South Korea’s personal data protection office revealed that it is looking into the consumer data practices of major overseas shopping sites, as South Koreans use Chinese e-commerce platforms like Alibaba’s AliExpress and Temu.
The use of Chinese e-commerce platforms such as Alibaba’s AliExpress and Temu is being investigated by South Korea’s personal data protection agency. They announced on Thursday that they are investigating the consumer data practices of major foreign shopping platforms in South Korea.
The Personal Information Protection Commission announced that it has been investigating overseas e-commerce platforms since last month, following a parliament audit last year that raised concerns about data handling by platforms such as AliExpress and PDD Holdings’ international discount e-commerce platform Temu.
The commission is reviewing their personal information processing rules, international transfers, and safety measures and will take action if there are any violations of South Korean law, according to a statement.
The announcement comes after South Korea’s antitrust authority, the Fair Trade Commission (FTC), sent inspectors to AliExpress’s South Korean office last week to investigate the platform’s consumer protection policies, according to Yonhap News Agency.
South Korean e-commerce purchases from China, particularly from platforms such as AliExpress and Temu, increased 121% year on year in 2023 to 3.3 trillion won ($2.48 billion), accounting for nearly half of total overseas e-commerce purchases, according to Statistics Korea statistics.
AliExpress, which began offering services in South Korea in 2018, plans to invest approximately 100 billion won in the country by 2023 to increase its presence, according to Daishin Securities analyst Lee Jee-eun.
Investors are watching to see if it and other Chinese e-commerce platforms’ rapid user growth in South Korea will have an impact on established players like Naver Shopping and Coupang, though faster shipping and easy returns from local firms may limit the influence of Chinese platforms’ price competitiveness, according to Seoul-based analysts.
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