South Korea’s e-commerce transaction value in the e-market including online-shopping malls grew at the lowest pace in three years as the economic recession has been lingering, a recent data showed.
The nation’s e-commerce transaction value jumped a meager 12.5 percent on-year to reach 276.1 trillion won ($254 billion) in the third quarter (Q3) of this year, according to data released by the Statistics Korea (KOSTAT) Tuesday. This is the slowest pace of increase since Q3 of 2009 (2.9 percent decline) when the nation’s economy was in the midst of economic recession. “Sluggishness in economic activities has caused business-to-business (B2B) transactions to slow down. Worse yet, the transaction value seems to lose its growth steam after having experienced rapid growth and thus shows no sign of increase,” explained the KOSTAT.
As for business-to-consumer (B2C) transactions including online-shopping, the transaction value jumped a disappointing level of 10.6 percent on-quarter to 8.0 trillion won in Q3 this year. This is the weakest growth since Q1 of 2009 when the value rose 5.8 percent.
More specifically, software (-23.4 percent), albums, videos and instruments (-10.7 percent), flowers (-4.1 percent) saw their transaction value markedly decline compared to the same period a year ago. Meanwhile, travel and booking services (30.9 percent), beverages and food (25 percent) and home appliances, electronic and telecommunication devices (15.5 percent) experienced rises in their transaction value.
Accordingly, the share of travel and booking services in cyber shopping grew from 16 percent in Q3 to 18.9 percent. The share of home appliances, electronic and telecommunication devices (from 10.7 percent to 11.2 percent) and beverages and food (from 7.8 percent to 8.8 percent) also edged up. Meanwhile, that of clothing and fashion items (from 15.1 percent to 14.5 percent) contracted.
[Written by Sang-deok Lee - Jieun Lee / edited by Soyoung Chung]
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]