Launching its service in the United States in September 2022, Temu quickly became a formidable contender against established players like Amazon and eBay, thanks to its ultra-competitive pricing strategy. (Image from Temu webpage)
SEOUL, Apr. 3 (Korea Bizwire) – Following in the footsteps of AliExpress, another major Chinese e-commerce platform, Temu, announced on April 2 the establishment of its South Korean subsidiary. Named “Whaleco Korea LLC,” the new venture marks Temu’s strategic expansion into the South Korean market.
The establishment of Whaleco Korea LLC on February 23rd was confirmed through the Supreme Court’s Internet Registry Service, with Chinese national Qin Sun listed as the founder. The company, boasting a capital of 100 million won, is headquartered in Jongno-gu, Seoul.
Qin Sun, co-founder of Temu, is associated with Whaleco in the United States, indicating a structured international presence. As a subsidiary of the Chinese e-commerce giant Pinduoduo Holdings (PDD), Temu has been making significant strides in the global market.
Launching its service in the United States in September 2022, Temu quickly became a formidable contender against established players like Amazon and eBay, thanks to its ultra-competitive pricing strategy. Since then, it has expanded into Europe and Asia, with its services commencing in South Korea last July.
The company’s innovative approach to customer acquisition in South Korea, involving roulette games and a multi-level marketing strategy, has sparked discussions. According to data from Wiseapp Retail Goods, as of February, Temu’s app boasted a user base of 5.81 million in South Korea, ranking it fourth among the most used comprehensive mall apps in the country, following Coupang, AliExpress, and 11Street.
Despite the establishment of its Korean subsidiary, Temu has yet to unveil detailed plans for the Korean market, such as investment and marketing strategies, similar to those of AliExpress.
Ashley Song (ashley@koreabizwire.com)
