South Korea e-commerce market to reach $170.1b by 2028

This is attributed to high-speed internet, secure payments, and growing consumer trust in online shopping.

South Korea’s e-commerce market is expected to grow significantly, with a forecasted compound annual growth rate (CAGR) of 7.8% from 2024 to 2028, reaching $170.1b (KRW222.1t) by 2028, according to GlobalData.

Currently, South Korea's e-commerce market is the fourth largest in the Asia-Pacific region, behind China, Japan, and India. The market saw a 12.6% CAGR from 2020 to 2023, hitting $114.2b (KRW 49.1t) in 2023. It is anticipated to grow by 10.2% in 2024, reaching $125.8b (KRW164.3t).

"South Korea boasts a robust e-commerce market, supported by high-speed internet infrastructure, secure online payment options, and a growing trust amongst consumers in the realm of online shopping,” said Shivani Gupta, Senior Banking and Payments Analyst at GlobalData.

“Furthermore, the country has witnessed significant digital retail advancements, including the utilisation of drones and robots for deliveries, AI-driven personalization, and the emergence of live stream shopping,” he added.

International brands are increasingly entering the South Korean market to leverage its expansion. For example, the Chinese fashion retailer Shein launched a Korean platform in June 2024. YouTube also started a Korean-language shopping channel in June 2023 and partnered with Coupang to introduce a Shopping affiliate program, allowing creators to earn commissions from product tags in their videos.

Payment cards led the e-commerce space with a 54.3% market share in 2023, with credit and charge cards accounting for 48.5% of transactions. Alternative payment methods like Samsung Pay and Naver Pay held a 32.9% share, while cash payments were only 2%.

"South Korea's e-commerce sector is set for accelerated growth, driven by increasing consumer adoption of online shopping, enhanced payment infrastructures, the rise of alternative payment solutions, and the popularity of innovative shopping experiences,” Gupta added.