In 2023, an escalating number of South Korean consumers voiced dissatisfaction with their experiences on overseas e-commerce platforms. This surge in discontent can be attributed to various factors, including the burgeoning presence of Chinese e-commerce giant AliExpress in the Korean market and the increasing demand for overseas travel facilitated by online travel agencies based in Singapore. The Korea Consumer Agency (KCA) shed light on this trend, indicating a notable increase in consumer complaints and disputes concerning direct purchases made through foreign online platforms.
Rise in Consumer Complaints: According to data released by the KCA, the total number of consumer inquiries and dispute reports related to overseas retail platforms surged to 19,418 cases in 2023, marking a significant 16.9 percent increase from the previous year. Particularly striking was the surge in requests for consumer advice regarding direct purchases from overseas platforms, which witnessed a staggering 68.9 percent increase, reaching 11,798 cases.
Impact of AliExpress and Chinese E-commerce: The KCA identified the expanding footprint of Chinese e-commerce platforms like AliExpress as a primary driver behind the surge in consumer dissatisfaction. Specifically, complaints related to AliExpress transactions witnessed a remarkable 295 percent increase, indicating a growing discomfort among South Korean consumers with the services provided by Chinese online platforms. This rise in discontent is indicative of challenges faced by consumers in navigating cross-border transactions and dealing with customer service issues.
Product Categories and Service Issues: Among the various product categories, clothing, shoes, and accessories emerged as the most problematic, comprising 33.2 percent of total complaints. This was followed by airline services (27.7 percent) and accommodation services (12.3 percent), highlighting a broad spectrum of grievances spanning both tangible goods and services. Service-related issues, such as delays in refunds or cancellations, constituted the primary cause of dissatisfaction, accounting for 37.7 percent of complaints. Delivery-related problems, including non-delivery and delays, were the second most common issue, comprising 13.6 percent of total cases.
Geographical Distribution of Complaints: Singapore emerged as the leading source of consumer complaints, accounting for 34.4 percent of total cases. This can be attributed to the prevalence of online travel agency services based in Singapore, catering to the growing demand for overseas travel among South Korean consumers. China followed closely behind, with a significant increase in complaints primarily associated with transactions on platforms like AliExpress.
Response from Regulatory Authorities: In response to the escalating concerns, the KCA announced plans to engage with overseas online retail platforms to address consumer grievances effectively. Additionally, efforts are underway to establish direct communication channels with AliExpress, given its prominent role in the surge of consumer complaints. These proactive measures aim to safeguard consumer rights and enhance the overall shopping experience for South Korean consumers on international e-commerce platforms.
Conclusion: The surge in dissatisfaction among South Korean consumers with overseas e-commerce platforms in 2023 underscores the complexities of cross-border transactions and highlights the need for enhanced consumer protection measures. As online shopping continues to transcend geographical boundaries, regulatory agencies and e-commerce platforms alike must collaborate to address consumer concerns and foster trust in international trade. Ultimately, prioritizing consumer welfare is essential for fostering a sustainable and thriving global e-commerce ecosystem.
