Chinese app Temu has seen a sevenfold increase in monthly active users in the South Korean market, while Alibaba’s AliExpress and Pinduoduo’s Temu are intensifying their efforts in the South Korean market.

AliExpress’s market share in the direct purchasing market increased from 16.0% in 2020 to 26.6% last year, surpassing 30%. Pinduoduo, a Chinese e-commerce platform, is entering the South Korean market with financial strength. Concerns arise due to diminishing psychological resistance to Chinese products.

Professor Kang Hyoung-goo warns of potential restrictions on domestic e-commerce platforms like Coupang due to the Online Platform Law. However, some civic groups argue that Chinese companies like Alibaba Group, which offer advanced artificial intelligence technology, could expand into the South Korean market.