Chinese e-commerce platforms AliExpress and Temu have collectively sold products worth 3 trillion won ($2.2 billion) over the past year in South Korea, raising concerns about their growing penetration among local rivals.

According to data from mobile app analytics service Wiseapp Retail Goods on Tuesday, AliExpress, Temu, and other major Chinese cross-border e-commerce platforms recorded a total transaction volume of 2.92 trillion won in Korea from April 1, 2023 to March 31, 2024.

This figure is based solely on consumer payment records, including credit cards, debit cards, and other forms of consumer payments.

When including corporate card transactions, business-to-business transactions, and payments made through mobile payment platforms, the total transaction volume is estimated to exceed 3 trillion won.

AliExpress has experienced rapid growth in transaction volume since it intensified its efforts to target the Korean market, such as appointing actor Ma Dong-seok as a brand ambassador in March 2023.

During China’s Singles’ Day, the largest shopping festival in China, held in November last year, monthly transaction volume exceeded 400 billion won.

Transactions amounted to 819.6 billion won in the first quarter, up 160 percent compared to the same period last year.

Temu, which entered the Korean market in August last year, has also shown significant growth.

Monthly transactions, which were 1 billion won when it first launched in Korea, nearly reached 20 billion won by the end of last year. Last month, it recorded approximately 46.3 billion won in transactions, more than double the previous month.

Shein, another Chinese e-commerce player known for its low-priced fashion items, and TikTok Shop, are also intensifying efforts to expand their presence in Korea.

With increased regulations on Chinese e-commerce in the U.S. and Europe, these platforms are now targeting the relatively regulation-free market in Korea.

TikTok Korea, the Korean subsidiary of the Chinese social media platform TikTok, applied for a trademark for TikTok Shop in Korea in December last year.

Recently, TikTok announced plans to hire over 40 employees for sales, business development, advertising, and e-commerce partnerships in Korea.

TikTok Shop, a live commerce platform that combines video and shopping, allows users to instantly purchase products they see in videos.

Despite being relatively new, it has gained popularity worldwide.

After entering the U.S. market in September last year, TikTok Shop’s total gross merchandise volume (GMV) surpassed $11 billion in just three months.

According to business analysis firm Fit Small Business, 55.5 million people, or 37.5 percent of TikTok users, in the U.S. have purchased products from TikTok Shop.



In the retail industry, concerns are growing that the combined force of AliExpress, Temu, Shein, and TikTok Shop, backed by their substantial financial resources from the Chinese domestic market, could dominate the Korean e-commerce market within a few years.

AliExpress had 8.87 million monthly active users in Korea as of March, while Temu had 8.29 million users. When combined with Shein’s 680,000 users, they reach a total of 17.84 million users, nearly 60 percent of Coupang’s 30.86 million users, the leading shopping app in Korea.

An industry insider predicted that the combined users of AliExpress, Temu, Shein, and TikTok Shop could exceed 30 million and approach 40 million by the end of this year.

However, the concern lies in the fact that AliExpress, Temu, Shein, and TikTok Shop have not yet fully invested in Korea.

If they were to intensify their investments, there is a high potential for explosive growth in both user base and transaction volume.

Compared to Korean e-commerce brands such as 11Street and Gmarket, which have already been surpassed by Chinese companies, these Chinese platforms outperform in terms of financial resources and revenue.

Last year, ByteDance, the parent company of TikTok, saw its revenue increase by 40 percent on-year to $120 billion, with a net profit of $40 billion.

Despite surpassing 30 trillion won in revenue last year and emerging as the number one player in the Korean retail industry, Coupang’s revenue of 31.82 trillion won and operating profit of 617.4 billion won are significantly smaller than those of Chinese competitors.

Coupang’s accumulated losses at the end of last year amounted to 6 trillion won.

By Choi Jae-won, Park Chang-young and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]