A sign showing the exchange rates of the Korean won against other currencies, including the Japanese yen, at a foreign exchange booth in Myeongdong, a shopping mecca in Seoul, on June 16, 2023. (Yonhap)
SEOUL, July 3 (Korea Bizwire) — The weak yen is encouraging more South Koreans to participate in foreign direct purchases from Japan.
According to data from Statistics Korea, South Koreans spent 120.17 billion won (US$91.8 million) in the first quarter on direct purchases from Japan through online shopping, marking a 29.1 percent year-on-year increase or a 64.7 percent increase from the first quarter of 2021.
The average exchange rate for the yen changed from 1,046.82 won for every 100 yen in January-March 2021 to 968.11 won for every 100 yen in the first quarter of this year.
This indicates that the volume of direct purchases grew faster than the decline in the yen’s value.
The popularity of direct purchases from Japan can be observed on South Korean e-commerce platforms.
Gmarket data revealed a 117 percent surge in sales of Japanese sports apparel and shoes between January and the end of June compared to last year.
Sales of other Japanese products, such as digital/home appliances (100 percent), luxury goods (75 percent), and jewelry and watches (35 percent), also experienced significant increases.
Wemakeprice Inc. reported a 165 percent jump in sales of Japanese fashion products for direct purchases from June 1 to 29, along with food/health items (140 percent), products for children (90 percent), and digital/home appliances (75 percent).
Ashley Song (ashley@koreabizwire.com)
