Executive Summary

E-commerce plays a crucial role in the South Korean economy, driving changes in consumer
behavior and leading digital transformation across industries. As of 2024, e-commerce transaction
volume reached 242 trillion KRW, accounting for 10.6% of GDP and 26.9% of total retail sales,
establishing itself as a key growth engine. However, as the market enters maturity, growth has slowed
and entered a stabilization phase, facing new challenges and opportunities.
In the South Korean economy, e-commerce has become a core sector in innovating consumption
structures, reshaping the domestic market, revitalizing regional economies, and enhancing global
competitiveness. Built on digital technology and platform economies, it leads trends such as mobile
shopping and personalized consumption. Particularly, the value-driven consumption culture of Gen-Z is expanding, fostering an environment where companies emphasizing sustainability and social
responsibility thrive. Moreover, the growth of the e-commerce industry positively impacts related sectors such as logistics, IT, and content production, contributing to job creation.
Amid market stabilization, leading companies are innovating consumer experiences and
strengthening delivery competitiveness through AI-based personalized services and advanced logistics technologies. Firms like Coupang, Naver, and Shinsegae actively implement AI to maximize logistics efficiency and provide customized customer services, maintaining their competitive edge. Additionally, domestic companies are accelerating their global market entry to showcase the differentiated value and competitiveness of Korean products to overseas consumers, advancing the construction of a global ecosystem.

The government is promoting various policies aimed at enhancing consumer protection and
fostering fair competition, including safeguards for prepaid funds, regulation of unfair trade practices,
and prohibition of dark patterns. It monitors significant market players for unfair conduct and responds
to the rapid growth of Chinese platforms by introducing measures to improve quality and safety,
supporting the competitiveness of domestic companies. However, excessive regulation may hinder the vitality of the e-commerce industry. Laws such as the Platform Act and digital taxes increase compliance costs for companies and weaken their willingness to innovate, potentially limiting growth potential. In particular, in April 2025, the U.S. imposed a 25% tariff on Korean imports, effectively nullifying the tariff-free environment under the Korea-U.S. FTA and significantly weakening the competitiveness of Korean companies in the U.S. market. As a result, e-commerce companies face increased cost burdens in direct purchases, reverse direct purchases, and B2B exports. Moreover, if Korea’s digital taxes and online platform regulations adversely affect U.S. companies, the U.S. may view these as non-tariff barriers and impose additional retaliatory tariffs, further increasing regulatory risks and cost burdens for Korean e-commerce companies entering the U.S. market.
Supported by technological innovation and policy measures, the e-commerce industry is
expected to sustain growth and solidify its position as a key driver of South Korea’s economic
development. In particular, technology-driven enhancements in customer experience, logistics
innovation, and global expansion are projected to generate economic value and contribute significantly to national economic progress.