South Korean E-Commerce Sector Booms with 6.3% CAGR, Fuelled by Digital Infrastructure and Evolving Consumer Trends

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.

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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.
• 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 .
• On competitive dynamics, the landscape is marked by fragmentation: established platforms co-exist with agile newcomers, and there's momentum toward consolidation through strategic partnerships. Market leaders are strategically investing in personalization, logistics optimization, and backend automation—creating fertile ground for emerging opportunities.
• 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.

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South Korean Micromobility Market Revenue To Surpass $11,000.0 Million by 2030

The South Korean micromobility market reached a value of $120.3 million in 2020, and it will generate $11,178.5 million revenue by 2030, as per the estimates of P&S Intelligence, a market research firm based in India. The market is being driven by the rising focus on mitigating traffic congestion in cities, burgeoning requirement for reducing air pollution and traveling expenditure, and soaring need for better first- and last-mile connectivity across the country. 

South Korea Micromobility Market - P&S Intelligence 

Due to their low cost, abundant availability, and ability to provide greater convenience than conventional transportation systems, the popularity of micromobility services is growing rapidly in South Korea. Moreover, the increasing concerns being raised over the escalating pollution and deteriorating air quality levels are also driving the requirement for micromobility services in the country. According to a study conducted in February 2017, South Korea recorded the second-worst air quality level out of all developed countries that are members of the Organisation for Economic Co-operation and Development (OECD).

As the adoption of micromobility services reduces the requirement for personal vehicle ownership, the soaring popularity of these services is predicted to solve the issue of road congestion, which will, in turn, mitigate the air pollution levels in the country. Besides this factor, the surging demand for better first- and last-mile connectivity is also expected to propel the growth rate of the South Korean micromobility market in the coming years. Depending on vehicle type, the market is classified into e-mopeds, bikes, scooters, e-bikes, e-pods, and e-scooters. 

The players operating in the South Korean micromobility market are actively focusing on partnerships in order to expand their operations and bolster their position in the industry. For example, KT Corporation announced in March 2021 that it has entered into a partnership with Omni System Co. Ltd. and the city authorities of Goyang for deploying 400 Tazo bikes near subway stations and other populated areas in the city. The organization also announced that it would start charging a fixed fee of $0.4 (KRW 500) for every 20 minutes from April 12, 2021.

Hence, it can be safely said that the market will register substantial growth in the coming years, mainly because of the rising requirement for better first- and last-mile connectivity and increasing road congestion in the country. 

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