[Alpha Biz= Paul Lee] Growth in China-origin cross-border online shopping into South Korea has sharply slowed this year, reflecting weakening price competitiveness and rising competition from domestic platforms.
According to government data released on May 5, purchases from China totaled KRW 1.23 trillion in the first quarter, up just 0.6% year-on-year—the slowest growth since a contraction in late 2019. This marks a significant deceleration from years of double-digit growth, which had peaked above 50% in 2020 and remained strong until recently.
As a result, total overseas direct purchases rose only 1.2% to KRW 1.98 trillion in the first quarter.
The slowdown is largely attributed to declining demand for low-cost fashion items, which previously accounted for nearly half of China-origin purchases. Spending in this category fell 9.4% year-on-year to KRW 532.7 billion, as quality concerns and a stronger exchange rate eroded price advantages.
Consumer complaints have also surged. Data from the Korea Consumer Agency showed that complaints related to overseas transactions rose 56% year-on-year in early 2024, with the highest number involving China and categories such as clothing and footwear.
The cosmetics segment has seen a similar downturn, with cross-border purchases from China declining 15.8% in the first quarter following a slight contraction in the previous quarter.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
