Korea E-commerce projected to grow 20% in 2011

Korea’s B2B e-commerce market is maturing with still impressive

growth figures of 20%. Both the average money spent (and the

percentage of people shopping online is growing currently at 64.5%

of the population.

Fast Facts:

B2C E-commerce turnover 2010: 14,700 Billion Won

Credit cards by far most popular payment method and growing

Average time spent online: 14.7 hours per week

13.3% used mobile devices for online purchases

Clothes/fashion and travel most popular industries

Large part of internet access is via cybercafes

General statistics 2011

Population 48,754,000

Currency Korean Won (KRW)

Major language Korean

Capital Seoul

GDP per capita US$: 30,000

Internet usage 2011

Users (total) 39,350,000

Users broadband 91%

Penetration 80%

Mobile subscribers 47,938,000

% Users in Asia 10.4%

Break-down online consumers

Mode of Payment

B2C e-commerce by industry

Monthly online spent

Success E-banking

E-banking was introduced to South Korea in 1999. By the start of 2003, about a third of the country’s

population used internet banking, second only to Sweden. People in their 30s made up the highest ercentage

of internet banking customers, with 38.9%, followed by those in their 20s with 31.6% and those in their 40s with

19.4%. Males represented a slight majority of internet banking customers at 54.7%.

According to the NIDA 2008 internet survey, 40% of all internet users over 12 years old were using

internet banking services. By age, those in the 20s and 30s bracket show relatively higher rates with

57.2% and 56.3% respectively. The monthly average for internet banking was 4.8 times per month.

By 2010, 42.3% of internet users aged 12 and above had used internet banking in the past year. In the

last month it had been used by 31.6% and 11.6% in the last week.

By age, those in the 20s and 30s bracket show relatively higher rates with 61.1% and 59.4% respectively. The

monthly average for internet banking was 4.9 times per month. Most internet banking users, 96.2% used a

computer while 9.2% used a mobile phone. The success of LG Telecom’s mobile phone banking (m-banking)

service named Bank On, led to LG Telecom partnerships with other banks and spurred the other mobile

operators to engage more in m-banking.

Payment preferences

Through credit card is the preferred payment, followed by real-time bank transfer the usage of mobile devices

to make online purchases shows strong growth.

Local entity requirement

In order to accept local payment methods a local entity is required.

Payment product spotlight

GlobalCollect’s Portfolio in Korea

International cards GlobalCollect supports MasterCard, Visa

Bank transfer GlobalCollect supports Local bank transfers

eWallet GlobalCollect supports PayPal

Local Cards Local cards support is being developed by GlobalCollect

Real-time bank transfer Realt-ime bank transfer is being developed by GlobalCollect the future’s list of GlobalCollect

Mobile The support for mobile is on the future’s list of GlobalCollect

Sources

KCC Data ||March 2011

Comscore || 2011

Buddecom || 2011

http://www.kostat.go.kr/ || November 2011

Internet WorldStats || September 2011

NIDA Survey || 2008

V3.0