South Korean eCommerce Trends: Retail vs. Online Shopping in 2022

In South Korea, 93% of the population had access to the Internet in 2022 which translates to approximately 47.2 million people. Most South Koreans shop online extensively already, but as eCommerce continues to grow rapidly, traditional retail channels are facing more challenges. 

Consumers visit brick-and-mortar stores for window shopping but prefer to make their actual purchases online to get good value for their money¹. While eCommerce contributes significantly to South Korea’s economy, it also has other implications. 

What Are the Drivers of Online Purchases in South Korea?  

Our country report reveals that 58% of online purchases are made because of cheap prices, but consumers are also willing to dig deep in their pockets to get their items delivered to them, making direct delivery (54%) the second common reason for purchasing items online. Overall, consumers also opt for eCommerce because it is convenient (53%).  

What Is the Most Popular Payment Method in South Korea?  

Over the last decade, South Korea has experienced a steady and continuous increase in both the number and volume of credit card transactions. According to Statista, about 63.8% of South Koreans used their credit card for online shopping in 2022. In fact, credit card transactions jumped to a value of about 988 trillion South Korean won in the same year, which is a significant increase from the previous year's total of about 886 trillion South Korean won. This trend reflects the growing popularity and reliance on credit cards as a preferred means of payment in the country among online shoppers.  

Which Devices Do South Korean Consumers Use Most for Online Shopping?  

When it comes to eCommerce, the most used devices for online shopping in the country were Smartphones with a 37% usage share, followed by Laptops with a 22% usage share and Desktop PCs at a 19% usage share. The wide use of smartphones is what propels mobile commerce which further explains why eCommerce conglomerates in the country are pumping money into upgrading their online stores and implementing fast delivery options among other strategies.   

South Korean Consumers Appreciate Seamless Online Shopping Experiences  

A major trend in online retail is the convergence of eCommerce with other platforms. These include Internet portals, social media platforms, TV home shopping, over-the-top (OTT) media services and more, all of which now offer online shopping capabilities. South Korea is witnessing a surge in the popularity of these integrated platforms as consumers eagerly embrace the allure of a seamless, all-in-one shopping experience. They appreciate having access to product reviews, price comparisons and the ability to shop and pay at the tip of their fingers using new online payment solutions associated with these platforms.  

Smartphones in South Korea  

The South Korean market has been described as having “intense, demanding, and eager consumers” ², this could be attributed to the age of the shoppers, however, as we mentioned at the start, most South Korean households have access to the internet. Devices have become deeply ingrained in the daily lives of its citizens. From online shopping and communication to mobile ticketing and payment methods, smartphones have been seamlessly integrated into nearly every facet of the average South Korean's life. 

However, this heavy reliance on smartphones comes with a downside. About 23% of smartphone users were found to be overly dependent on their devices in 2022, highlighting the potential negative impact of this technology on individuals and society. When asked in another survey in 2019 whether they would be able to stop using their cell phones in South Korea, about 55.7% of respondents said they would not be able to stop using their cell phones at all. Nontheless, South Korean eCommerce companies will most likely continue to implement digital convergence strategies to meet the needs of these consumers.   

South Korean Consumers: Key Takeaways  

Sources 

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