South Korea’s e-commerce market has recorded significant growth amid the Covid-19 pandemic.
According to GlobalData, social-distancing measures and lockdowns have driven increasing demand for online shopping in the country.
GlobalData’s analysis estimated South Korea’s e-commerce market at US$90.1 billion this year with annual growth of 22.3 per cent. The market is expected to reach $141.8 billion in 2024.
“The demand for e-commerce has skyrocketed amid the pandemic as wary consumers prefer to stay at home to avoid social contact,” said Nikhil Reddy, Banking and Payments analyst at GlobalData.
Fastest-growing sectors include food-delivery services and household goods, increasing by 61.5 per cent and 48.9 per cent, respectively.
The growth in e-commerce has also benefited card companies and payment providers. Card payments are the most-preferred payment method for e-commerce purchases in South Korea, accounting for 70.4 per cent this year, according to GlobalData’s 2020 Banking and Payments Survey.
Seeing the potential in the market, international companies including Shopify and Facebook Shops have launched their business there this year.
“The pandemic has brought a permanent change in the consumer-buying behaviour. With the increasing number of people staying indoors, it will further accelerate the shift to e-commerce purchases,” Reddy said.