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South Korea’s e-commerce market to exceed $240B in 2025

The coronacrisis has brought a lasting change in the consumer buying behavior

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South Korea’s e-commerce market to exceed $240B in 2025. Source: pexels.com

According to GlobalData, South Korea’s e-commerce market ranks among the most developed in the world and has been on sustained growth over the past few years.

Supported by the country’s robust technology infrastructure, the trend is forecast to continue over the next few years to reach $242.2 billion in 2025.

The report has found that due to the COVID-19 pandemic, lockdown, and social distancing measures undertaken by the government, e-commerce payments in South Korea grew by 22.2% in 2020. In fact, they are estimated to register similar growth of 25.4% to reach KRW131.0 trillion (US$120.3bn) in 2021.

The pandemic has transformed the way consumers shop as they are increasingly switching online channels for purchases due to social distancing rules and closure of brick-and-mortar stores. Wary consumers prefer to stay home to avoid social contact, making online purchasing even more appealing
Shivani Gupta, Banking and Payments Senior Analyst at GlobalData

While sectors such as travel and accommodation were badly affected due to lockdown and travel restrictions, strong growth was seen in grocery, electronics, and healthcare products which led to rise in overall e-commerce sales.

We’ve reported that PayU and Red Dot Payment get Visa and Mastercard acquiring licenses.

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