Korean Consumers Favor Domestic Platforms Despite Cheaper Chinese Alternatives (Image supported by ChatGPT)
SEOUL, May 17, 2025 (Korea Bizwire) — Despite the growing presence of Chinese e-commerce giants like AliExpress and Temu, a majority of South Korean consumers still prefer domestic online platforms for their perceived reliability and product quality—even at higher prices, a government report revealed Friday.
According to a report published by the Korea Information Society Development Institute (KISDI), 54.8% of South Korean consumers with experience using Chinese platforms said they would opt for domestic online malls despite higher costs.
The findings are based on a January 2025 online survey of 1,235 consumers aged 20 to 69 who had shopped on sites like AliExpress, Temu, Coupang, and Naver Smart Store in the prior three months.
Coupang topped the usage chart with 85.1% of respondents reporting recent purchases, followed by Naver Smart Store at 75.5%. In contrast, AliExpress and Temu trailed with usage rates in the 20–30% range. For AliExpress and Temu users, low prices were the top purchase driver (cited by 70%), while Coupang users overwhelmingly valued fast delivery (74.1%).
When asked to compare platforms, 60.9% of respondents said domestic online malls offer better product quality than their Chinese counterparts. However, 67.7% acknowledged that comparable goods tend to be cheaper on Chinese platforms.
User concerns varied by platform. Over half of Temu users called for stricter quality control, while Coupang users highlighted the need for more trustworthy reviews.
Meanwhile, 60.7% of those who had purchased from Chinese platforms reported dissatisfaction or issues with their orders—15.5% said their complaints were unresolved despite contacting customer service.
At a press conference hosted by People’s Solidarity for Participatory Democracy, Jeong Ji-yeon, Secretary General of the Korea Consumer Federation (third from the left), explains the issues with the unfair terms of service of the Chinese online platforms “Ali” and “Temu” from the consumer’s perspective. (Image courtesy of Yonhap)
Despite these drawbacks, KISDI warned that the rapid expansion of Chinese platforms could trigger a fundamental shift in South Korea’s retail, logistics, and manufacturing ecosystems.
AliExpress’s recent investments in building a domestic logistics network, for instance, could significantly erode the market share of Korean logistics firms, the report said. The shift may lead to subcontracting of Korean infrastructure and increased dependency on foreign platforms.
The influx of ultra-low-priced Chinese goods—often taking advantage of Korea’s low-value import tax exemptions—could also undermine domestic SMEs, erode price competitiveness, and threaten the survival of local manufacturers, the report added. In the long term, such developments risk hollowing out the nation’s industrial base.
The study also raised red flags about broader platform accountability, including opaque algorithms, fake reviews, and weak data protection standards.
Ashley Song (ashley@koreabizwire.com)
