Digital Expansion and Fragmented Competition Drive South Korea's Rapid E-Commerce Growth

NEW YORK - June 11, 2025 - PRLog -- According to the latest market research study published by P&S Intelligence, the South Korean e‑commerce market reached USD 102.0 billion in 2024 and is projected to expand at a robust CAGR of 6.3% from 2025 to 2032, reaching USD 164.4 billion by 2032. This notable growth is fueled by a blend of factors—most notably, ever‑improving internet infrastructure, near-universal smartphone penetration, and evolving consumer behavior that favors mobile-first shopping. Over 99% of the population has internet access and more than half of online retail transactions occurred via digital channels in 2023.

Key enablers shaping this expansion include technological innovations—such as streamlined payment gateways and AI-powered personalization—plus regulatory frameworks designed to support secure online transactions. Credit and debit cards remain the dominant payment method, while hybrid business models (combining online and occasional offline presence) are emerging as the fastest-growing category. Together, these drivers are not only scaling the market but also fostering diversification and sophistication in the e‑commerce ecosystem.

Key Insights

• The market segmentation analysis reveals contrasting growth dynamics: while credit/debit card usage leads payments, hybrid business models—which integrate online convenience with selective offline engagement—are becoming the fastest-growing model. The market remains fragmented, with many players vying for niche dominance, from vertical specialists to large multi-category platforms.
• From a regional and geographical standpoint, South Korea benefits from nearly universal internet access (~99% penetration), setting a strong digital foundation. The urban–rural digital divide is minimal, and dense metropolitan areas—especially Seoul and Busan—continue to lead in adoption and sales volume.

Browse detailed report analysis on "South Korea E-Commerce Industry Growth and Forecast Report, 2032 (https://www.psmarketresearch.com/market-analysis/south-ko...)"

• Technological advancements are central to market transformation: investments in robust mobile infrastructure, high-speed broadband, and growth in mobile-first consumer behavior support smoother transactions and richer customer experiences. Enhanced digital payment ecosystems and AI-powered recommendation systems further heighten platform capabilities .
• Emerging opportunities include expansion of hybrid commerce—merging digital storefronts with physical pop-up or pickup points—and growth in next-gen services like one-hour delivery, social commerce, and subscription-based models. There's also rising interest in segment-specific verticals (e.g., beauty, groceries, electronics), where niche players can achieve competitive advantage.
• Innovation-driven growth is being accelerated by government and private-sector efforts to bolster secure digital payments, encourage fintech solutions, and streamline logistics networks. These measures support rapid scaling and increased consumer confidence in cross-border online purchases.