Chinese retailer Miniso, known for its affordable household and cosmetic products, re-entered the South Korean market in December 2024 after a three-year hiatus. (Image courtesy of Yonhap)
SEOUL, Jan. 6 (Korea Bizwire) — Chinese businesses are making significant inroads into South Korea, diversifying their presence across retail, electric vehicles (EVs), e-commerce, and consumer electronics.
This trend reflects a broader shift as Chinese companies seek to offset slowing domestic growth and navigate rising trade barriers in the U.S. and Europe.
Retail Resurgence: Miniso’s Global Expansion
Chinese retailer Miniso, known for its affordable household and cosmetic products, re-entered the South Korean market in December 2024 after a three-year hiatus.
The company, which launched stores in New York’s Times Square and Paris’ Champs-Élysées last year, plans to open 900–1,100 new stores annually over the next five years. Miniso aims to generate 50% of its revenue from international markets by 2030.
This file photo from Feb. 27, 2024, shows a BYD SUV model exhibited at the Geveva International Motor Show in the Swiss city. (Image courtesy of Yonhap)
Electric Vehicles: BYD Leads the Charge
China’s electric vehicle giant BYD will officially launch its passenger car brand in South Korea on January 16, establishing a nationwide dealership network. BYD, which sold 1.76 million EVs globally last year, is expected to introduce competitively priced small SUVs, sedans, and hatchbacks. Other Chinese EV makers, including Geely’s premium brand Zeekr and Leapmotor, are also eyeing the South Korean market.
This influx of Chinese EVs is anticipated to challenge domestic automakers like Hyundai and Kia, especially as Chinese brands offer advanced technology at lower prices.
Roborock’s flagship model, the S8 MaxV Ultra (Image courtesy of Roborock)
Consumer Electronics: Xiaomi Expands, Roborock Dominates
Xiaomi recently established a South Korean subsidiary and plans to open offline stores this year, focusing on affordable smartphones, wearables, and home appliances. The company is also exploring the sale of EVs in South Korea, following its entry into the EV market globally in 2024.
Roborock, a Xiaomi-backed robotics company, already leads the South Korean market for robotic vacuum cleaners, with its high-end models retailing for up to ₩1.8 million. It has also entered the laundry appliance market, directly competing with local giants like Samsung and LG.
AliExpress had 8.99 million monthly active users, second only to Coupang, while Temu ranked third with 8.13 million users. (Image from Temu webpage)
E-Commerce Boom: Alibaba and Temu Surge Ahead
Chinese e-commerce platforms Alibaba’s AliExpress and Pinduoduo’s subsidiary Temu are rapidly gaining traction in South Korea. As of December 2024, AliExpress had 8.99 million monthly active users, second only to Coupang, while Temu ranked third with 8.13 million users. Both platforms leverage low-cost goods and efficient supply chains to appeal to South Korean consumers.
AliExpress recently partnered with Gmarket, a Shinsegae Group platform, to further strengthen its foothold. Temu is expected to establish a local subsidiary in 2025, intensifying competition in South Korea’s $228 billion e-commerce market.
Cha Bai Dao has partnered with high-end retailers like Galleria Department Store to target premium consumers. (Image courtesy of Hanwha Galleria)
Beverage Industry: Chinese Milk Tea Brands Enter South Korea
Chinese milk tea brands, including Cha Bai Dao and Heytea, have opened stores in major South Korean cities, reflecting the growing popularity of Chinese tea culture. Cha Bai Dao has partnered with high-end retailers like Galleria Department Store to target premium consumers.
Broader Implications: A Competitive Landscape
As Chinese companies expand into South Korea, they are reshaping competitive dynamics across multiple industries. “Chinese firms are overcoming past issues of quality and leveraging advanced technology and pricing advantages to capture market share,” said Jo Chul, a senior researcher at the Korea Institute for Industrial Economics and Trade.
Despite lingering consumer skepticism about Chinese brands, experts predict that these companies will secure a foothold in South Korea, particularly in price-sensitive and tech-driven segments. The ongoing diversification of Chinese businesses underscores their strategic pivot toward global markets, with South Korea becoming a key battleground for their ambitions.
M. H. Lee (mhlee@koreabizwire.com)
