The surge in direct purchases from China via e-commerce channels witnessed a substantial spike of 70 per cent last year, according to data released by the Korea Customs Service on March 17. Concurrently, the volume of consumer complaints has tripled, reflecting the growing challenges posed by this burgeoning trend.
The figures unveiled by the Korea Customs Service underscore a pronounced escalation in the influx of e-commerce goods from China, soaring to 88.81 million in 2023, marking a notable surge of 70.3 per cent from the preceding year’s tally of 52.15 million.
In tandem with this exponential growth, the overall volume of e-commerce goods cleared last year reached 131.44 million, signifying a robust uptick of 36.7 per cent. Notably, the escalation in direct shipments from China has outpaced the expansion observed in total cross-border shipments.
The trajectory of direct shipments from China has exhibited a steadfast ascent, escalating from 27.48 million in 2020 to 52.15 million in 2022, underscoring a marked upward trend in recent years.
Simultaneously, the proportion of direct hits as a fraction of the total has steadily expanded, climbing to 68 per cent in 2023, reflecting a palpable surge from 43 per cent in 2020.
In terms of monetary value, direct imports from China amassed a staggering $2.359 billion in 2023, surging by 58.5 per cent from the preceding year’s tally of $1.48 billion. This remarkable surge surpassed the 11.7 per cent increase recorded in total overseas imports, which rose from $4.725 billion to $5.278 billion over the same period.
Moreover, China has emerged as the predominant destination for overseas imports, capturing a substantial 45 per cent share of the total, outstripping the United States, which registered $1.53 billion in imports last year.
The meteoric rise in Chinese direct shipments can be attributed to the aggressive marketing strategies employed by prominent online platforms such as Aliexpress and Temu, offering attractively priced products to the domestic market.
However, this exponential growth has exacerbated challenges, notably a dearth of manpower to effectively manage and scrutinise incoming goods. This shortage has precipitated instances of consumer grievances, as evidenced by a surge in complaints lodged against Aliexpress, which ballooned to 673 last year, tripling from the previous year’s count of 228.
Furthermore, instances of intellectual property rights infringement have seen a steady uptick, with 65,000 Chinese-made counterfeit goods detected by customs authorities last year, constituting an 8.3 per cent increase from the preceding year’s tally of 60,000.
Of the total 68,000 infringing goods identified, a staggering 96 per cent originated from China, highlighting the pressing need for heightened vigilance and regulatory measures amidst this escalating trend.
This story was originally published by M. H. Lee, via Korea Bizwire.
