The social commerce market in South Korea is expected to grow by 16.8% on annual basis to reach US$24.72 billion in 2025.
The social commerce market in the country experienced robust growth during 2021-2024, achieving a CAGR of 19.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 13.0% during 2025-2030. By the end of 2030, the social commerce sector is projected to expand from its 2024 value of USD 21.18 billion to approximately USD 45.62 billion.
This report provides a detailed data-centric analysis of the social commerce sector in South Korea, covering market opportunities and risks across a range of retail categories. With over 50+ KPIs at the country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunities in the social commerce sector by type of domestic vs cross-border, type of social platform, type of payment method, business model, end-use consumer segment, and type of city. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Over the next few years, businesses that adapt to these developments by enhancing their digital capabilities and embracing innovative shopping formats are poised to thrive in South Korea's dynamic market. Staying attuned to consumer preferences and technological advancements will be crucial for sustained success.
At the same time, regulatory developments will shape the sector's trajectory, with the Korea Fair Trade Commission introducing measures to promote fair competition and transparency in the digital marketplace. Companies operating in social commerce must navigate these changes carefully, ensuring compliance while maintaining a competitive edge. Moving forward, businesses that leverage technology, form strategic partnerships and adapt to regulatory shifts will be best positioned to capitalize on South Korea’s expanding social commerce landscape.
The social commerce market in the country experienced robust growth during 2021-2024, achieving a CAGR of 19.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 13.0% during 2025-2030. By the end of 2030, the social commerce sector is projected to expand from its 2024 value of USD 21.18 billion to approximately USD 45.62 billion.
This report provides a detailed data-centric analysis of the social commerce sector in South Korea, covering market opportunities and risks across a range of retail categories. With over 50+ KPIs at the country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.
It breaks down market opportunities in the social commerce sector by type of domestic vs cross-border, type of social platform, type of payment method, business model, end-use consumer segment, and type of city. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Key Insights
South Korea's social commerce landscape is evolving rapidly, characterized by integrating e-commerce features into social media platforms, live commerce, and the dominance of mobile shopping. These trends are driven by consumers' demand for convenience, interactivity, and seamless digital experiences.Over the next few years, businesses that adapt to these developments by enhancing their digital capabilities and embracing innovative shopping formats are poised to thrive in South Korea's dynamic market. Staying attuned to consumer preferences and technological advancements will be crucial for sustained success.
Integration of E-commerce Features into Social Media Platforms
- South Korean social media platforms increasingly incorporate e-commerce functionalities to facilitate seamless shopping experiences. For instance, KakaoTalk has expanded its services beyond messaging to include shopping features, allowing users to purchase products directly within the app. Similarly, Naver Shopping integrates social elements, enabling users to share and discuss products within their networks.
- The high smartphone penetration rate in South Korea and consumers' demand for convenience drive this trend. The convergence of social interaction and shopping caters to the tech-savvy population's preference for integrated digital experiences.
- This trend is expected to intensify, with more platforms enhancing their e-commerce capabilities to capture a larger market share. Businesses leveraging these integrated platforms will likely benefit from increased consumer engagement and sales.
Growth of Live Commerce
- Live commerce, which combines live streaming with online shopping, is gaining momentum in South Korea. Retailers use live broadcasts to showcase products, interact with consumers in real time, and drive immediate purchases. Platforms such as Naver Shopping Live have become popular channels for such activities.
- The desire for interactive and engaging shopping experiences fuels this trend. Consumers appreciate the ability to ask questions and receive instant feedback during live sessions, which enhances trust and reduces purchase hesitation.
- As live commerce continues to resonate with consumers, more retailers are expected to adopt this approach. Investments in live streaming infrastructure and partnerships with influencers will likely increase, further embedding live commerce into South Korea's retail landscape.
Dominance of Mobile Shopping
- Mobile shopping has become the dominant force in South Korea’s e-commerce sector, with nearly 73% of all online sales conducted via mobile devices. Consumers increasingly rely on their smartphones for shopping due to the ease of browsing, purchasing, and accessing personalized recommendations. This shift has prompted retailers to enhance their mobile platforms, ensuring seamless transactions and optimized user experiences.
- The primary drivers of this trend are the widespread availability of high-speed internet and the high penetration of smartphones in South Korea. Consumers prefer the convenience of shopping on the go, leading businesses to invest in mobile-first strategies, such as app-based loyalty programs, AI-driven product recommendations, and seamless mobile payment options such as Naver Pay and Kakao Pay. Retailers that fail to adapt to this mobile-centric landscape risk losing customers to competitors offering superior digital experiences.
- Over the next two to four years, the focus on mobile-friendly shopping experiences is expected to strengthen, with continued investments in app development and mobile-responsive platforms. Companies that integrate emerging technologies such as augmented reality (AR) for virtual product trials and AI-driven chatbots for customer service will likely gain a competitive edge. As mobile commerce solidifies its primary sales channel, businesses prioritizing mobile innovation will be best positioned to capture South Korea’s tech-savvy consumer base.
Competitive Landscape and Regulatory Developments in South Korea's Social Commerce Market
South Korea's social commerce sector is set for sustained growth, fueled by the increasing integration of shopping features within social media platforms and the expansion of mobile-first shopping experiences. The presence of dominant local players such as Coupang and Naver, combined with the entry of global competitors such as AliExpress and Temu, is intensifying competition. As a result, businesses must continuously innovate and optimize their digital strategies to remain competitive in an evolving marketplace.At the same time, regulatory developments will shape the sector's trajectory, with the Korea Fair Trade Commission introducing measures to promote fair competition and transparency in the digital marketplace. Companies operating in social commerce must navigate these changes carefully, ensuring compliance while maintaining a competitive edge. Moving forward, businesses that leverage technology, form strategic partnerships and adapt to regulatory shifts will be best positioned to capitalize on South Korea’s expanding social commerce landscape.
Current State of the Social Commerce Market
- South Korea's social commerce market is experiencing significant growth, this expansion is driven by the widespread use of social media platforms and the integration of shopping features within these platforms, facilitating seamless purchasing experiences for consumers.
- The high penetration of smartphones and the availability of high-speed internet have further fueled this trend, enabling consumers to engage in social commerce conveniently. As a result, businesses are increasingly leveraging social media channels to reach a broader audience and enhance customer engagement.
Key Players and New Entrants
- Established e-commerce platforms such as Coupang and Naver have expanded their services to include social commerce features, aiming to capture a larger market share. These companies utilize their extensive user bases and technological capabilities to offer personalized shopping experiences through social media integration.
- New entrants, including international players such as Alibaba's AliExpress and PDD Holdings' Temu, have entered the South Korean market, intensifying competition. These platforms are gaining traction by offering competitive pricing and a wide range of products, appealing to price-sensitive consumers.
Recent Launches, Mergers, and Acquisitions
- In December 2024, Alibaba announced a joint venture with South Korean retailer E-Mart, combining their e-commerce platforms, AliExpress Korea and Gmarket, while allowing them to operate independently. This partnership, valued at approximately $4 billion, aims to strengthen its position in South Korea's competitive e-commerce market.
- Additionally, South Korean retailer Shinsegae plans to establish a joint venture with Alibaba International, integrating its 100% stake in Gmarket. This move is expected to enhance Gmarket's services and improve customer experience amid increasing competition from both local and international players.
Outlook
- Over the next 2-4 years, South Korea's social commerce landscape is expected to become increasingly competitive, with established players and new entrants striving for market share. Strategic partnerships and joint ventures are likely to continue as companies seek to leverage synergies and enhance their service offerings.
- Regulatory developments will play a crucial role in shaping the competitive dynamics, with potential new laws influencing platform operations and competitive strategies. Companies must stay abreast of these changes to navigate the evolving landscape effectively.
Regulatory Changes
- In May 2024, the Korea Fair Trade Commission (KFTC) amended its Merger Review Guidelines to clarify the application of merger control regulations in the digital market. These changes aim to address the unique characteristics of digital platforms and ensure fair competition.
- Furthermore, there have been discussions around implementing additional legal measures to regulate online platforms, focusing on promoting transparency and preventing anti-competitive practices. These potential regulations could impact how social commerce platforms operate, particularly data usage and platform neutrality.
Scope
This report provides in-depth, data-centric analysis of social commerce in South Korea. Below is a summary of key market segments.South Korea Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2021-2030
South Korea Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2021-2030
South Korea Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2021-2030
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Travel
- Hospitality
South Korea Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2021-2030
- B2B
- B2C
- C2C
South Korea Social Commerce Industry Market Size and Forecast by End Use Device, 2021-2030
- Mobile
- Desktop
South Korea Social Commerce Industry Market Size and Forecast by Location, 2021-2030
- Domestic
- Cross Border
South Korea Social Commerce Industry Market Size and Forecast by Location, 2021-2030
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
South Korea Social Commerce Industry Market Size and Forecast by Payment Method, 2021-2030
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
South Korea Social Commerce Industry Market Size and Forecast by Platforms
- Video Commerce
- Social Network-Led Commerce
- Social Reselling
- Group Buying
- Product Review Platforms
South Korea Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2024
- By Age
- By Income Level
- By Gender
South Korea Social Commerce Market Share by Key Players, 2024
Reasons to buy
- Insights on Strategy & Innovation: Navigate through future direction of the social commerce industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
- In-depth Understanding of Social Commerce Market Dynamics in South Korea: Understand emerging opportunities and future direction of the social commerce market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.
- Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
- Gain comprehensive insights with this report, featuring South Korea’s detailed report encompassing 44 tables and 57 charts, providing in-depth country-level analysis to support strategic decision-making.
- Competitive Landscape: Get a snapshot of competitive landscape in social commerce sector with key players and market share in South Korea. Formulate your strategy by gaining insights into the current structure of the market.
- Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the social commerce sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
- Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments in social commerce sector.
Table of Contents
1. About this Report
2. South Korea Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators
3. South Korea Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators
4. South Korea Social Commerce Industry Market Size and Forecast by Location
5. South Korea Social Commerce Industry Market Size and Forecast by Product Categories
6. South Korea Social Commerce Industry Market Size and Forecast by End Use Consumer Segment
7. South Korea Social Commerce Industry Market Size and Forecast by End Use Device
8. South Korea Social Commerce Industry Market Size and Forecast by Cities
9. South Korea Social Commerce Industry Market Size and Forecast by Payment Method
10. South Korea Social Commerce Industry Market Size and Forecast by Platforms
11. South Korea Social Commerce Industry Market Size and Forecast by Contents
12. South Korea Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour
13. Further Reading
List of Figures
List of Tables
Companies Mentioned
- TikTok
- TMON
- Zigbang
- Wemakeprice
