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South Korea's monthly online shopping transactions reach $13.8 billion

South Korea's monthly online shopping transactions reach $13.8 billion

Statistics Korea, a South Korean government organization under the Ministry of Economy, has reportedly released data that shows that South Korea's online shopping market volume has touched a new record high due to the COVID-19 pandemic. According to reports, the industry had already been expanding sharply over the recent years.

Online shopping is considered to have contributed significantly to private consumption and, eventually, the nation's GDP.

Based on the statistics, the monthly transactions from online shopping reached an all-time peak of ₩16.19 trillion, or $13.8 billion, in July of 2021. This marked a growth of 24.9% from a year prior, when a ₩12.96 trillion won turnover was posted.

In comparison to July 2017, when the market volume was ₩7.89 trillion, the industry has expanded more than 105.1% in just four years. The monthly turnover increased further, reaching ₩9.65 trillion, ₩11.3 trillion and ₩12.96 trillion in the July 2018, 2019, and 2020, respectively.

The comparison of statistics for 2019 and 2020 shows that online purchase transactions remained strong despite the poor economic indicators in the aftermath of the novel coronavirus.

With respect to segment, agricultural, fisheries, and livestock products recorded a 242% growth between July 2017 and July 2021, going from ₩182 billion to ₩542 billion. Turnover among online grocery and beverage merchants grew by 223%, rising from ₩638 billion to ₩2.06 trillion.

Particularly, online food delivery and takeout services increased 961% through the corresponding four year period, from ₩224 billion to ₩2.37 trillion.

The turnover of all items sold online topped ₩15 trillion for the first time in November 2020, after topping ₩10 trillion in October of 2018.

The growth has been aided by systematic package delivery services, which are capable of delivering items to customers across the country in one to three days period, or even under ten hours in some urban areas.

While online sales for tours and transportation fell dramatically in 2020 as a result of the COVID-19 pandemic, the industry has begun to show signs of recovery.

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