AliExpress, Temu grow in South Korea as spending dips

Chinese ecommerce apps AliExpress and Temu expanded in South Korea, as consumers sought cheaper goods amid inflation and weaker spending.

WiseApp Retail said AliExpress had 8.57 million monthly active users and Temu had 8 million in the January-March period.

Both were ahead of domestic rivals including 11street and Gmarket, while Coupang remained the market leader with 33.25 million users.

Temu also led shopping app downloads, while consumption spending fell 0.4% in 2025.

Chinese fashion app Shein also saw stronger growth, nearly tripled younger consumers to 1.22 million in January.

The platforms are also partnering South Korean retailers on exports, raising concerns over dependence on Chinese networks.

🧠 Food for thought

Implications, context, and why it matters.

South Korea’s appeal goes beyond bargain hunting. It also comes from a tougher US trade stance 1.
A US executive order ended the tariff break for shipments under US$800, which cut into profits for Chinese shopping platforms in the American market 1.
That shift has pushed AliExpress, Temu and Shein to expand further in South Korea, with groundwork likely already in place 1.

As these companies grow, South Korean regulators are moving past consumer complaints and taking a harder look at how they operate 2.
South Korea’s data privacy watchdog fined AliExpress 2 billion won (US$1.4 million) over overseas transfers of customer data to third-party sellers. Temu may face similar scrutiny 3.
The pressure is prompting more local investment. Temu signed a long-term lease for a 165,000-square-meter logistics center in Gimpo near Seoul, while AliExpress expanded its tie-up with CJ Logistics, a large South Korean delivery company 1.
Domestic leader Coupang plans to spend more than 3 trillion won (US$2.04 billion) over three years on logistics infrastructure 4.