Unsurprisingly – given South Korea’s advanced technological capabilities – South Koreans largely rely on electronic payment mechanisms for the purchase of goods online. This can be good news for a foreign e-retailer into the territory, as cash-on-delivery is not a common payment method here.
Bank cards are overwhelmingly the most popular online payment method in this country, accounting for some 70% of these transactions.
NUMBER OF CREDIT CARDS: 112 MILLION
NUMBER OF DEBIT CARDS: 90 MILLION
The average South Korean consumer (aged 18+) has 4 credit cards.
Alternative payment methods make up roughly 30% of South Korea’s online payment landscape, and so are an important consideration for e-retailers broaching this market. Some alternative payment methods worth considering include:
Western online payment providers such as Amazon and PayPal are expected to make significant gains within South Korea over the next 5 years, though, as indicated above, e-money has yet to gain a foothold in the South Korean market.
Mobile purchasing in South Korea has exploded in recent years, and many of the payments services listed above have/are special services for mobile devices. As an e-retailer, putting in place mechanisms to accept mobile payments in this location is therefore of the upmost importance, particularly as shoppers in South Korea who purchase goods through mobile devices tend to spend more when compared to conventional online consumers, or those who purchase goods in store.
For more information on mobile purchasing in South Kores please visit reaching and engaging your consumers.
There are various options available when it comes to establishing yourself in the South Korean market.
Consumers in South Korea expect excellent after-sales customer service, including a free local contact number for advice and support.
Around 50% of South Koreans have reported that slow delivery is one of their primary concerns.