Recently South Korea has become a very attractive market for non-Korean companies who wish to enter the Asian market. Koreans are becoming known for their spending behavior, which is unusually high for their small population (just under 51,000,000). They commonly spend a high percentage of their salaries online.
According to a survey by Forrester conducted in 2014, 39 percent of the respondents reported spending more than 50 percent of their total monthly spending on online purchases. Strikingly, 84% of Korean respondents preferred to use their credit or debit card as the payment method when making an online purchase, which is far higher than many of the regional (55%) and global (52%) counterparts.
This makes South Korea a very attractive market for companies who want to enter the online area but there are some complications and costs involved. With unique payment gateways to deal with along with rules and regulations in the order fulfillment area jumping in without prior knowledge and or advice is unadvisable.
When entering the e-commerce market, companies must maintain a customer line (in Korean language) as part of the country’s regulations. This put together with the cost of hiring an order fulfillment company can easily go into the tens of thousands of dollars (U.S.), which is costly for a company who wants to test the market.
On top of the cost communication can also be an issue and this is where World Markets Korea can help. Owned by British and New Zealand nationals business is conducted in English and along with extensive knowledge of the Korean marketplace World Markets Korea can help companies in every aspect.
If you need help with translation/localization of your website(s) and marketing material, order fulfillment and customer service or consultation World Markets Korea are just an email away.
We look forward to helping you soon.