South Korea Ecommerce Table of Contents
In addition to the highest worldwide average Internet access speed, South Korea ranks as one of the world's most connected countries with an online penetration of 92.7 percent. In Korea, almost 19m homes have internet connections, with 99.2 percent via the optical xDSL, LAN, modem cable, or mobile, according to a Government report. Nearly 99% of South Koreans spend 14.3 hours a week on the internet. More than 5 million Koreans 60 years old and older browse the Internet, over 50% of the age group, most of them for the immediate message (compared to only 30 percent of the same age group in the U.S.)
With a penetration rate of 77.7 percent, South Korea is the world's sixth-largest smartphone user. The number of mobile subscribers in South Korea is estimated by official sources at 47.4 million, even though some users require more than one account. Naver holds 74 percent. The search-engine market is dominated by local operators. Google has a 10% market share that has grown rapidly over the years, but it is marginal.
South Korea is Asia's third-largest market for e-commerce. Home internet transactions in 2016 amounted to US$55.9 billion, up from the previous year's figure of US$47.6 billion. In factors such as the advanced Internet infrastructure and the highest Internet penetration rate in the country, Research and market study showed that e-commerce revenue already accounted for approximately 20% of overall retail sales. More than half of internet users bought goods online and two-thirds of them purchased them every month. Travel, clothing, and appliances were the most common types of products bought online.
South Korea has a remarkable level of m-commerce: over half the country's internet distribution came from mobile devices last year. Comfort is the main m-commerce engine with smartphones both as the most common online shopping interface and used more often than computers. Popular shopping apps such as 11Street and Coupang have had seven-digit customers, but eBay Korea still has the highest revenue market share. We Make Price, Ticket Monster (TMON), Auction and G-Market are also prominent e-commerce pages. In the industry, too, Amazon is involved.
Online orders by international merchants have increased rapidly because Koreans find cheaper rates even after international shipping charges and import duties are added to overseas websites. Internet shopping from overseas supermarket websites in 2016 amounted to US$1.6 billion, with US online retailers 65 percent of the purchase. While official statistics for B2B e-commerce are not available, several players have sought to extend B2B on consumables to small and medium-sized enterprises. In 2012, a B2B shopping website called 'Biz on' was launched for the first time by G-market. Auction has B2B pages for food ingredients branded 'Biz club' and 'Biz plus' for other food ingredients. The B2B e-commerce industry is projected to be very dynamic with 5.4 million business owners and 3.5 million small and medium-sized companies.
Travel and book facilities (17.4%), home appliances and electronics (11%), clothes (10.6%), home and auto accessories (10.2%), and cosmetics (7.9%) and laptops(6.2%) are among the most common items supplied by domestic online retailers. First, internet orders exceeded Korea's largest shopping outlet in hypermarket transactions. The total user income is measured at US$1.150 at the moment. The aged groups that are most involved are between 20-29 and 30-39 and about 80% of their members buy products and services online.
The numbers are still poor for groups aged between 40-49 and 50-59 years at 57% and 30%, but gradually arising. With competitors growing between e-commerce firms, fast delivery is essential to draw more consumers. In order to meet this need, Coupang one of Korea's most successful e-commerce platforms invests US$1.3 billion to develop the supply logistics system called the 'rocket delivery' to distribute products within one day of placing an order.
Some of the key reasons that make consumers buy online are discounts and no difficulty, despite a close-by shop will sell an item straight away. According to a survey conducted by the Korea Internet and Security Agency, 72.4% of the PC and 68.1% of the smartphone customer are credit card-based. Next to the account switch and debit card.
84% of the population in the third quarter of 2017 are participating social media users of 51.25 million in the population (around 43 million). 88.3% of internet users aged over 6 use messenger, and 99.2% use KakaoTalk, a local messenger with more than three-fold Facebook Messenger penetration (29.2%) and Naver's Line (13 percent). KakaoTalk-inspired a social media network: KakaoStory, has almost 30 million members while Facebook is used by 26.6m people. There are just over 10 million active users monthly on Instagram.
Although smartphone users are widely popular with South Korea's social networks, there are growing Facebook interests among advertisers and customers. A DMC Media analysis showed, for example, that social media users aged 19-59 spend more time on Facebook every day, regardless of the type of smartphone or the operating system than any other social network. Rather than any other social media platform, businesses in South Korea use Facebook.
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