Alibaba Group to invest $1.1b in South Korea for business expansion

It intends to invest $200m for the logistics hub and $100m to support South Korean SMEs.

Alibaba Group has announced its plans to invest $1.1b in South Korea over the next three years.

The investment will focus on constructing a logistics centre and expanding business operations, according to a report by Yonhap News Agency.

This year, Alibaba plans to spend $200m on building the logistics hub and allocate $100m to support small and medium-sized South Korean firms in selling their products internationally.

The company will also invest around $74.67m (100 billion won) to enhance consumer protection measures in South Korea.

The move comes amid scrutiny of Alibaba's subsidiary, AliExpress, by South Korean authorities.

ALSO READ: 'Buy online, pick up anywhere' gains traction from retailers, consumers

The surge in complaints against AliExpress, including issues like misdeliveries, order cancellations, and inadequate delivery information, has prompted regulatory action. Complaints reported to the Consumers Union of Korea surged from 93 cases in the previous year to 465 cases last year.

Meanwhile, the number of AliExpress users in South Korea reached 7.18 million in February from 3.36 million in 2022.

Also Read

Omnichannel retail is the path to profit

8 in 10 SEA SMEs expect sales growth during festive season

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit