| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 102.0 billion |
| 2025 Market Size | USD 107.4 billion |
| 2032 Forecast | USD 164.4 billion |
| Growth Rate (CAGR) | 6.3% |
| Largest Payment Method | Credit/Debit Cards |
| Fastest Growing Business Model | Hybrid |
| Nature of the Market | Fragmented |
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The South Korean e-commerce market size was USD 102.0 billion in 2024, and it will grow by 6.3% during 2025-2032, to reach USD 164.4 billion by 2032.
The market is driven by technological innovation, changes in consumer behavior, and easy access to the internet. As per reports, over 50% of the online retail sales in South Korea were conducted online in 2023. People now prefer mobile-first shopping settings due to expansive internet infrastructure and extensive smartphone usage. As per studies, almost 99% of the country’s population has access to the internet. The high demand for smartphones increases mobile commerce, while social media sites, such as Naver and Kakao Talk, drive social commerce.
Various innovations in the business model are further demonstrated through initiatives such as IKEA Korea and Hyaloid's adaptable fashion tech-systems, which have enhanced the scope of digital interior design services. Niche categories, including health supplements and cosmetics, are witnessing rising online sales due to consumers’ shifting preferences for personalized wellbeing solutions.
The grocery & essentials category held the largest market share, of 28%, in 2024 because of the rise in demand for convenient and time-saving solutions. As people in South Korea have busy lifestyles, they prefer to order necessary items, such as food, personal care, and drinks, from online platforms. The option of same-day/next-day delivery also drives this category and transitions customers to contactless shopping.
The apparel & footwear category will have the highest CAGR due to the increasing demand for trendy footwear and fashion apparel that highlight people’s individuality and personality. Customers choose online shopping for its large selection of designs at a more reasonable price. As per reports, around 50% of consumers buy clothes and footwear from online platforms.
The products analyzed in this report are:
The business-to-business category held the largest market share, of 45% in 2024, due to the large-scale transactions and volume purchases in sectors including manufacturing and wholesale goods. The shift toward digital supply chains and the use of digital buying solutions enables companies in consistent and long-term expansion.
The business-to-consumer category will have the highest CAGR, of 6.9%, due to the rise in the number of consumers shopping online for a wide range of products at lower prices. The rise in smartphone usage, innovations in payment methods, and availability of same-day deliveries, drive this category. As per reports, around 79% of individual consumers purchase items from online stores.
The platforms analyzed in this report are:
The credit/debit cards category held the largest market share, of 40%, in 2024, due to its cashback incentives, discounts, interest-free financing choices, and reward programs. According to the surveys, about 54% of the customers use credit cards for shopping.
The BNPL category will have the highest CAGR, of 7.1%, because of the strong demand from young consumers. Moreover, the flexibility offered by e-commerce platforms helps them in managing their finances effectively.
The payment methods analyzed in this report are:
The marketplace category held the largest market share, of 55% in 2024, due to the large product variety, cost-effective pricing, and optimized delivery infrastructure. Platforms such as Gmarket and Coupang follow this business model, connecting a wide range of sellers with consumers.
The hybrid category will have the highest CAGR because these models provide inventory and allow third-party sellers to offer their products. The faster deliveries and better quality enabled by this business model enhance consumer satisfaction and trust.
The business models analyzed in this report are:
The same-day/next-day category held the largest market share, of 40% in 2024, due to the high consumer demand for convenience and faster deliveries. Platforms such as Coupang provide fast services, assuring product delivery within a short timeframe. The widespread usage of mobile commerce also increases the demand, as consumers seek instant availability of goods. As per reports, around 99% of the Coupang orders are delivered within 24 hours.
The cross-border/international shipping category will have the highest CAGR due to the enhancing global trade networks and high demand for international products. Consumers’ demand for unique products at a cost-effective price, especially fashion accessories, beauty products, and electronics, is rather high in South Korea. According to reports, around 50% of the consumers purchase products from international firms or suppliers.
The delivery times analyzed in this report are:
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The market is fragmented due to the variable consumer behavior, which enables the existence of a huge number of first- and third-party e-commerce suppliers. Companies such as Naver, Gmarket, and Coupang compete across a broad range of products, with no one company holding a sizable portion of the industry. Various niche platforms and customized services are being designed to meet consumers’ needs for cross-border shopping, electronics, and fashion. This competition encourages brands to improve their delivery services, lower prices, and increase satisfaction leveraging the advancements in payments and returns. This also allows smaller platforms to innovate, to operate in parallel with larger companies.
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