Data released by the Statistics Korea on February 1 showed that cross-border e-commerce imports from China surged by 121.2% year-on-year in 2023. China has surpassed the United States to become South Korea’s source of cross-border e-commerce imports. What is the reason for the rapid growth? Which products of our country are in South Korea?

Financial Channel Special Correspondent Zhu Hongyu: In the Gangnam business district in Seoul, South Korea, there are many offline stores of Korean brands. Many consumers say that shopping is getting more and more expensive. They said that they often buy things on two cross-border e-commerce platforms in China, such as aprons for cooking and various small household appliances. Monthly living expenses are limited, and China’s cross-border e-commerce platform meets the daily shopping needs of Korean consumers, and the prices are also cost-effective.

Data released by the Statistics Korea on February 1 showed that cross-border e-commerce imports from China in 2023 exceeded 3.2 trillion won (approximately RMB 17.1 billion), a year-on-year surge of 121.2%, accounting for South Korea’s overall cross-border direct imports. 48% of the purchase amount.

Judging from the specific categories of goods purchased by Korean consumers using cross-border e-commerce online, sports and entertainment products increased by more than 60%. Secondly, the direct purchase amount of clothing, fashion and lifestyle and automotive supplies also increased by 30% to 40%. . The main reason for the rapid expansion of China's cross-border direct purchase market is that against the background of high prices in South Korea, two Chinese cross-border e-commerce platforms have improved their price competitiveness by directly connecting Chinese sellers and Korean consumers. In addition, the wide variety of products, various promotions, fast delivery, free returns, and full refund guarantee policies are favored by Korean overseas shopping consumers.

In order to continue to expand its user base, China's cross-border e-commerce platform has strengthened its local strategy and attracted Korean brands with zero handling fees. Consumers can place orders for Chinese cross-border products and Korean local products at the same time. As the brand composition expands, the target users of China's cross-border e-commerce platform will also expand to middle-aged and elderly people.

The development of China's cross-border e-commerce not only benefits Korean consumers, but also the Korean logistics industry. As a large number of cross-border logistics packages are processed, the performance of Korean domestic logistics companies improved in the fourth quarter of 2023. In addition, the Korean aviation industry also stated that it will drive performance growth by increasing cargo charter flights from China.