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Investing.com - Bernstein has released a comprehensive analysis of the Korean e-commerce market, projecting 5% annual growth from 2025 to 2027 as online retail penetration continues to expand.
The Korean e-commerce market currently boasts 42% online retail penetration in 2024, exceeding China’s 34%, according to Bernstein’s report. This penetration is expected to reach 46% by 2027, with the percentage of internet users shopping online increasing from 83% to 86% during this period.
Bernstein identifies Coupang (NYSE:CPNG) and Naver (KRX:035420) as the "two clear winners" in the Korean market following the decline of Qoo10 affiliates after a 2024 liquidity crisis. The report credits Coupang’s success to its free shipping policy, rapid delivery offerings, and cross-selling between food delivery and product commerce.
Chinese platforms represent a potential threat to Korean e-commerce players, with Bernstein noting that Korean shoppers’ time spent on Chinese shopping apps now amounts to approximately 33% of time spent on Coupang. AliExpress has formed a strategic alliance with Shinsegae (KS:004170) that’s under review by Korean regulators, while Temu has increased hiring in Korea.
Department stores are expected to continue losing market share as parent companies of tier-2 e-commerce platforms de-prioritize online retail, potentially providing growth opportunities for market leaders Coupang and Naver.
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