Image Credits - Korea Times
South Koreans made a record amount of direct online purchases from China in the first quarter of 2024. Data released on Wednesday by Statistics Korea showed that the total value of South Koreans buying products directly from overseas sellers online was 1.65 trillion won ($1.19 billion) from January to March 2024. This was an increase of 9.4% compared to the same period last year, and it was the highest figure ever for the first quarter.
In 2023, South Korea’s direct investments in China decreased sharply. This significant decline in investment flows signals weakening economic ties between South Korea and China. It comes as the United States is urging its allies, including South Korea, to reduce their economic dependence on Beijing.
Out of the total, purchases made directly from Chinese sellers accounted for 938.4 billion won, a huge 53.9% increase from a year earlier. This means that direct online purchases from China saw a bigger jump compared to overall overseas direct buying by South Koreans in the first three months of 2024. China accounted for the largest share of South Korea’s total direct overseas online shopping during this period.
In South Korea, the total value of online shopping transactions in the first quarter of 2024 was 59.68 trillion won. This marked a 10.7% increase compared to the same period last year, and was the highest amount ever recorded for the first three months of any year. This growth was driven by increased demand for travel, transportation services, and food items during the Lunar New Year holiday period, which ran from February 9-12 this year.
After China, the next biggest source for direct online purchases by South Koreans in the first quarter was the United States at 375.3 billion won, followed by the European Union at 142.1 billion won. Direct purchases from China made up 57% of the total value of direct overseas online shopping by South Korean consumers during the January to March period.
The U.S. accounted for 22.8% of South Korea’s total direct imports via online shopping in the first quarter. The European Union had an 8.6% share of the total value of direct online purchases from abroad by South Koreans during this period.
Out of the total online shopping value, purchases made via smartphones, tablets and other mobile devices accounted for 44.36 trillion won, up 10.8% from a year earlier. In March alone, online shopping transactions in South Korea amounted to 20.45 trillion won, a 9.1% year-on-year increase. The data shows that online shopping, especially via mobile devices, continued robust growth in the first quarter, boosted by holiday spending in categories like travel and food.