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Photo = Coupang |
[Alpha Biz= Kim Jisun] Online shopping in South Korea has hit a record high, accounting for nearly 30% of total consumer spending, marking the largest share ever. With the growth of the online shopping market, it is expected that the annual transaction value for last year will exceed 240 trillion KRW.
According to the Statistics Korea's "November 2024 Online Shopping Trends" report, the online shopping transaction amount in November 2023 was 21.22 trillion KRW, reflecting a 1.0% increase from the same month the previous year. While the growth rate itself is the second-lowest since October (0.7%), the transaction value is the highest ever since the classification system for related statistics was revised in 2017.
The increase is attributed to higher-than-usual autumn temperatures, which led to a shift in demand from fall clothing to higher-priced winter garments. Additionally, the effects of the annual "Korea Sale Festa" (KoSep) contributed to the increase, according to Statistics Korea.
As the online shopping market grew, its share of total retail sales also increased. In November 2023, 28.3% of total retail sales (54.85 trillion KRW) came from online shopping (excluding service consumption). This is the highest share recorded to date. The percentage has been rising year after year: 24.6% in 2021, 24.8% in 2022, and 25.4% in 2023.
This means that nearly 30% of total goods consumption now occurs online or through mobile, indicating a significant shift toward non-face-to-face transactions.
With the continued expansion of the online shopping market, the annual transaction volume is expected to exceed 240 trillion KRW. The accumulated transaction amount for January-November 2023 reached 221.4 trillion KRW, and even the month with the smallest transaction volume exceeded 19 trillion KRW. Considering these factors, December’s transaction volume is likely to follow suit.
The annual transaction volume has steadily increased, with 190.2 trillion KRW in 2021, 211.1 trillion KRW in 2022, and 228.9 trillion KRW in 2023, further supporting the projection that it will surpass 240 trillion KRW last year.
Although the recent coup-related consumption slowdown poses a downside risk to online shopping, experts believe its impact on the online shopping transaction amount will be limited for now.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
