AliExpress has recently launched a large-scale marketing campaign in South Korea. Notably, its “10 Million Won Cash Raffle” event, held to commemorate Singles’ Day (November 11), attracted significant attention, drawing 270,000 participants. (Yonhap)
SEOUL, Nov. 20 (Korea Bizwire) – South Korean regulators have blocked nearly 2,000 product listings from Chinese e-commerce platforms AliExpress and Temu since May, citing safety violations that threaten consumer well-being.
This move underscores the growing challenges posed by cross-border e-commerce amid its meteoric rise in the country.
A Surge in Unsafe Products
From May to October, the Korea Fair Trade Commission (KFTC) and the Korea Consumer Agency flagged 1,915 hazardous products for removal.
Electronics and children’s products accounted for the majority of blocked items, with reasons ranging from toxic substances like lead and cadmium to risks of electric shock and choking hazards.
• Electronics made up 33% of blocked items, with 56.9% of these containing harmful materials.
• Children’s products represented 30.7%, primarily due to toxicity (47.8%) and choking risks (40.5%).
• All 293 blocked accessory items were flagged for hazardous materials.
Additionally, over 1,400 listings involved products either recalled abroad or deemed unfit for redistribution in South Korea.
A Temu representative emphasized the company’s business model, which involves direct shipping from factories. (Image from Temu webpage)
Regulatory Push for Consumer Safety
The crackdown follows a voluntary safety agreement signed in May between regulators and AliExpress and Temu. Beyond product bans, the KFTC scrutinized and corrected 47 unfair terms in the platforms’ user agreements. These revisions included:
• Narrowing broad liability exemptions for the platforms.
• Limiting the collection and sharing of user data.
• Ensuring dispute resolutions adhere to South Korean legal standards.
The platforms have committed to implementing the changes by Black Friday, a crucial shopping period.
In April, the watchdog requested AliExpress, Temu and about eight other Chinese internet firms to faithfully comply with the South Korean law on personal data protection. (Image courtesy of Yonhap)
The Rise of Cross-Border E-commerce
South Korea’s cross-border shopping market has boomed, reaching ₩6.8 trillion in 2023, up from ₩5.1 trillion in 2021. Chinese platforms now dominate, with China holding a 48.7% market share in 2023, overtaking the United States.
AliExpress and Temu, key players in this growth, reported 9 million and 6.8 million monthly active users, respectively, in October.
However, this growth has brought new challenges, including the proliferation of unsafe products and concerns over data privacy.
Protecting Consumer Rights
As Black Friday and Boxing Day sales are expected to further boost cross-border shopping, South Korean regulators have urged consumers to be vigilant about product safety and composition.
The KFTC emphasized that foreign platforms operating in South Korea must adhere to domestic consumer protection standards. These measures aim to safeguard the rights of the 13 million South Koreans who rely on cross-border e-commerce.
Both AliExpress and Temu have expressed their commitment to compliance. “We will continue to prioritize consumer safety and ensure strict adherence to South Korean regulations,” AliExpress said. Temu echoed similar sentiments, pledging to improve its practices to align with local laws.
Ashley Song (ashley@koreabizwire.com)
