The EC market is expected to undergo drastic changes from the new year. What is the best way for Korean companies to survive? = Korean report

China's major e-commerce (EC) company Alibaba Group's Global Express and China's low-cost cross-border e-commerce site Temu are some of the Chinese companies that are
As e-commerce companies make full-scale inroads into the Korean market, the Shinsegae Group and Alibaba Group have established a joint venture, and the e-commerce market is expected to change dramatically in 2025.
If the joint venture between Shinsegae Group and Alibaba Group were to distribute Chinese products, it would be difficult for companies like Coupang and Naver to do so.
According to the Korea National Statistical Office, the amount of online shopping transactions in 2023 is expected to increase 8.3% from the previous year to 22,734,780 million won (about 24,200,100 million yen).
Of this, cross-border e-commerce with Chinese companies grew 121.2% to 3.2873 trillion won (approximately 349.843 billion yen). In response to Chinese companies, Naver launched a shopping app called "Nexin" in November.
The company will launch the "Verplus Store," which will feature an artificial intelligence (AI) shopping recommendation function that understands users' search intent and recommends products.
Professor Choi Yun-jeong of the Department of Economics at Yonsei University said, "To differentiate from Chinese e-commerce, we need to gain value from both consumers and sellers.
Korean e-commerce companies need to strengthen partnerships with stakeholders while enhancing customer shopping experiences through AI technology and data-based marketing.
" he said.