South Korea's retail market isn't just growing—it's undergoing a seismic shift where online carts are filling faster than physical ones, with e-commerce now commanding a 28% share and mobile transactions making up a staggering 78% of all digital sales.
Key Takeaways
- In 2023, South Korea's total retail sales reached 512.3 trillion KRW, reflecting a 4.1% year-over-year (YoY) increase driven by post-pandemic recovery.
- The retail market in South Korea grew at a CAGR of 3.8% from 2019 to 2023, reaching a market value of USD 450 billion in 2023.
- Offline retail sales accounted for 72% of total retail in South Korea in 2023, down from 85% in 2019.
- In Q1 2024, South Korea retail sales rose 2.4% YoY to 128.5 trillion KRW.
- Department store sales in South Korea increased 5.6% YoY to 12.3 trillion KRW in 2023.
- Convenience store sales volume grew 4.2% in 2023, reaching 152 trillion KRW.
- South Korea e-commerce market size was 212 trillion KRW in 2023, +10.5% YoY.
- Mobile shopping transactions accounted for 78% of total e-commerce in South Korea in 2023.
- Number of e-commerce users in South Korea reached 48.2 million in 2023, 92% penetration.
- South Korea's 20-39 age group spent 62% of their retail budget online in 2023.
- 75% of South Korean consumers prefer contactless payments in retail in 2024 survey.
- Average shopping frequency per month for convenience stores is 15 times per person in 2023.
- Number of convenience stores reached 55,000 in South Korea by end-2023.
- Total retail space vacancy rate was 5.2% in major cities in Q1 2024.
- Lotte World Tower retail space occupancy hit 98% in 2023.
South Korea's retail industry continues growing steadily through digital transformation and consumer premiumization trends.
Consumer Trends
- South Korea's 20-39 age group spent 62% of their retail budget online in 2023.
- 75% of South Korean consumers prefer contactless payments in retail in 2024 survey.
- Average shopping frequency per month for convenience stores is 15 times per person in 2023.
- 68% of consumers prioritize sustainability in food retail purchases in 2023.
- Premium private label products saw 28% purchase increase among millennials in 2023.
- 82% of South Koreans shop online weekly, up from 70% in 2021.
- Health and wellness product spending rose 19% YoY per household in 2023.
- Impulse buying rate in convenience stores is 45% for snacks in 2023.
- 55% of consumers use loyalty apps for retail discounts in 2023.
- Vegan product trial rate among 20s age group reached 35% in 2023.
- Average basket size in hypermarkets increased 8% to 45,000 KRW in 2023.
- 71% of shoppers research products online before offline purchase (ROPO) in 2023.
- Gender gap in luxury spending narrowed to 5% in 2023, women at 52% share.
- Regional consumers outside Seoul spend 12% more on local products in 2023.
- 40% of seniors (65+) adopted mobile payments for retail in 2023.
- Pet-related retail spending per household averaged 1.2 million KRW annually in 2023.
- 63% prefer eco-friendly packaging in retail buys per 2023 survey.
- Nighttime shopping (after 8pm) share rose to 22% in urban retail 2023.
- K-beauty product repurchase rate is 78% among domestic consumers in 2023.
- Household debt impact led to 15% increase in discount shopping in 2023.
- 52% of Gen Z prioritize experience over possession in retail 2023.
- Average time spent in department stores per visit is 2.1 hours in 2023.
- 67% use price comparison apps before retail purchase in 2023.
- Organic food market penetration in retail baskets is 18% in 2023.
- Solo household spending share of retail is 38% in 2023.
- 76% of consumers influenced by social media reviews for retail buys 2023.
- Inflation-adjusted real retail spending per capita fell 0.5% in 2023.
- 49% prefer buy-now-pay-later options in retail 2023 survey.
- Winter apparel sales peak shifted 10 days earlier due to mild weather in 2023.
- 61% of families allocate 25% of budget to grocery retail monthly in 2023.
- Membership-based retail clubs grew 15% in subscribers to 12 million in 2023.
Consumer Trends Interpretation
South Korea's retail scene reveals a nation of digitally-native, convenience-craving paradoxes, where young adults are living their best lives online while impulsively snacking at the corner store, all while earnestly trying to save the planet, hunt for a premium deal, and pay for it later—preferably after a quick scroll through social media and a contactless tap of their phone.
E-commerce Growth
- South Korea e-commerce market size was 212 trillion KRW in 2023, +10.5% YoY.
- Mobile shopping transactions accounted for 78% of total e-commerce in South Korea in 2023.
- Number of e-commerce users in South Korea reached 48.2 million in 2023, 92% penetration.
- Online retail sales growth rate was 9.7% in 2023, vs 2.1% offline.
- Coupang's market share in e-commerce was 25% in 2023.
- Live commerce sales volume hit 40 trillion KRW in 2023, up 25%.
- Cross-border e-commerce imports to South Korea totaled 15 trillion KRW in 2023.
- Average annual e-commerce spending per user was 4.4 million KRW in 2023.
- E-commerce platform fees averaged 12-15% of GMV in South Korea 2023.
- Quick commerce delivery sales grew 35% to 8 trillion KRW in 2023.
- Social commerce transactions increased 18% YoY in 2023.
- E-commerce fulfillment centers expanded by 20% in capacity in 2023.
- 2024 e-commerce growth forecast is 8.5% for South Korea.
- Video shopping (live + VOD) share of e-commerce was 22% in 2023.
- Subscription e-commerce users numbered 15 million in South Korea 2023.
- Overseas direct purchase e-commerce was 12% of total in 2023.
- E-commerce logistics cost per order averaged 2,500 KRW in 2023.
- Naver Shopping's GMV grew 14% to 30 trillion KRW in 2023.
- Kakao Shopping transactions up 28% in 2023.
- E-commerce return rate in fashion category was 25% in 2023.
- Digital wallet usage in e-commerce reached 65% in 2023.
- E-commerce ad spend in South Korea was 7 trillion KRW in 2023.
- Metaverse retail sales experimental volume was 500 billion KRW in 2023.
- E-commerce SME participation rate was 45% in 2023.
- Voice commerce orders grew 40% to 1.2 trillion KRW in 2023.
- B2B e-commerce platform sales hit 50 trillion KRW in 2023.
- AR try-on usage in e-commerce fashion was adopted by 30% of top sites in 2023.
E-commerce Growth Interpretation
While South Korea's offline retail crawls forward at a snail's pace, its e-commerce scene is a caffeine-fueled sprint where everyone shops on their phone, watches live streams like it's prime-time TV, and seems to have a personal vendetta against returning clothes that fit perfectly on their digital avatar.
Market Size and Growth
- In 2023, South Korea's total retail sales reached 512.3 trillion KRW, reflecting a 4.1% year-over-year (YoY) increase driven by post-pandemic recovery.
- The retail market in South Korea grew at a CAGR of 3.8% from 2019 to 2023, reaching a market value of USD 450 billion in 2023.
- Offline retail sales accounted for 72% of total retail in South Korea in 2023, down from 85% in 2019.
- South Korea's retail sector contributed 10.2% to the national GDP in 2022, employing over 4.5 million people.
- The hypermarket segment in South Korea generated 45.6 trillion KRW in sales in 2023, representing 8.9% of total retail sales.
- Retail sales volume index in South Korea stood at 105.3 in December 2023 (base 2020=100), up 2.7% YoY.
- Projected retail market growth in South Korea for 2024-2028 is 2.9% CAGR, driven by premiumization trends.
- In 2023, food and beverage retail sales in South Korea hit 280 trillion KRW, 54.6% of total retail.
- South Korea's retail trade turnover increased by 3.2% in Q4 2023 compared to Q4 2022.
- The number of retail establishments in South Korea was 1.2 million in 2022, a slight decline of 0.5% YoY.
- Wholesale and retail trade sector grew 4.5% in value added terms in 2023.
- South Korea retail market penetration rate for organized retail reached 65% in 2023.
- Total retail investment in South Korea amounted to 15 trillion KRW in 2023 for expansions.
- Retail sales per capita in South Korea were 9.8 million KRW in 2023.
- The retail industry's export contribution from South Korea was USD 25 billion in 2023.
- In 2023, discount store sales in South Korea totaled 32.4 trillion KRW, up 1.8% YoY.
- South Korea's retail market is projected to reach USD 550 billion by 2027.
- Organized retail share in South Korea increased to 68% in urban areas by end-2023.
- Retail sales growth in South Korea slowed to 2.1% in H1 2024 from 4.5% in 2023.
- The value of retail trade enterprises in South Korea averaged 1.45 billion KRW per firm in 2022.
- South Korea retail sector's digital transformation investment hit 8 trillion KRW in 2023.
- Total retail floor space in South Korea expanded by 1.2% to 250 million sqm in 2023.
- Retail sales index for durable goods in South Korea was 112.4 in 2023 (2020=100).
- South Korea's retail market fragmentation index stood at 0.42 in 2023, indicating moderate concentration.
- Annual retail sales growth forecast for South Korea in 2024 is 2.8%.
- In 2023, supermarkets contributed 18.3% to total retail sales in South Korea.
- Retail sector's share of consumer spending in South Korea was 28.5% in 2023.
- South Korea retail M&A deals totaled 25 in 2023, valued at 5.2 trillion KRW.
- Projected CAGR for South Korea retail 2023-2030 is 3.2%.
- Retail sales in South Korea's capital region accounted for 55% of national total in 2023.
Market Size and Growth Interpretation
South Korea's retail sector, responsible for over a tenth of the economy, is methodically evolving as offline's stubborn 72% majority share endures a steady digital siege, all while the market, fueled by premiumization and a hearty appetite for food and drink, marches toward a projected $550 billion future.
Retail Infrastructure
- Number of convenience stores reached 55,000 in South Korea by end-2023.
- Total retail space vacancy rate was 5.2% in major cities in Q1 2024.
- Lotte World Tower retail space occupancy hit 98% in 2023.
- Number of hypermarkets operated 450 units nationwide in 2023.
- Department store floor space totaled 4.2 million sqm in 2023.
- Convenience store density is 1 per 1,000 residents in Seoul 2023.
- New retail developments added 1.5 million sqm in 2023.
- Traditional markets numbered 34,000 with 250,000 shops in 2023.
- Duty-free stores expanded to 450 outlets in 2023.
- Logistics warehouses for retail grew 15% in capacity to 50 million sqm 2023.
- Outlet mall GLA increased 12% to 1.8 million sqm in 2023.
- Pop-up store activations numbered 5,200 in urban areas 2023.
- Supermarket chains operated 2,800 stores in 2023.
- Retail REIT assets under management reached 20 trillion KRW in 2023.
- Drive-thru facilities in convenience stores: 8,000 units in 2023.
- Flagship store count for global brands: 1,200 in Gangnam 2023.
- Vending machine retail units: 2.5 million nationwide 2023.
- Unmanned stores reached 4,500 units by end-2023.
- Retail parking spaces totaled 1.2 million in shopping centers 2023.
- Experiential retail zones in malls: 30% of total space in 2023.
- Franchise retail outlets: 180,000 in 2023.
- High-street retail rent in Myeongdong averaged 1,200 USD/sqm/year 2023.
- Omnichannel retail stores with pickup: 70% of chains in 2023.
- Ghost kitchen retail tie-ups: 2,000 locations in 2023.
- Retail digital signage installations: 50,000 units in 2023.
- Co-working retail hybrid spaces: 300 opened in 2023.
- Sustainable retail building certifications: 150 new in 2023.
- Metro retail space absorption: 800,000 sqm in 2023.
- Pharmacy chain stores: 25,000 outlets in 2023.
Retail Infrastructure Interpretation
While South Korea's retail landscape paints a vivid picture of convenience store saturation and stubborn mall vacancies, the soaring occupancy of iconic towers and a frenzy of pop-ups reveal a sector fiercely evolving, proving that for every shuttered hypermarket, a dozen experiential zones and ghost kitchens are ready to take its place.
Sales Performance
- In Q1 2024, South Korea retail sales rose 2.4% YoY to 128.5 trillion KRW.
- Department store sales in South Korea increased 5.6% YoY to 12.3 trillion KRW in 2023.
- Convenience store sales volume grew 4.2% in 2023, reaching 152 trillion KRW.
- Duty-free shop sales in South Korea hit 18.7 trillion KRW in 2023, up 12% YoY.
- Traditional market sales declined 1.8% to 95 trillion KRW in 2023.
- Home shopping sales via TV in South Korea were 7.5 trillion KRW in 2023, down 3.1%.
- Apparel retail sales grew 6.3% YoY to 42 trillion KRW in 2023.
- Food retail sales performance index was 103.8 in 2023 (2020=100).
- Electronics retail sales surged 8.7% to 35.2 trillion KRW in Q4 2023.
- Monthly retail sales for supermarkets averaged 3.8 trillion KRW in 2023.
- Discount store same-store sales growth was 2.1% in 2023.
- Luxury goods retail sales in department stores rose 15.4% YoY in 2023.
- Non-store retail sales increased 9.2% to 78 trillion KRW in 2023.
- HMR (Home Meal Replacement) product sales jumped 22% in convenience stores in 2023.
- January 2024 retail sales grew 1.9% YoY, led by food categories.
- E-mart's 2023 sales reached 27.1 trillion KRW, up 4.8%.
- Lotte Mart sales volume increased 3.5% to 18.9 trillion KRW in 2023.
- GS Retail convenience stores posted 12.4 trillion KRW sales in 2023.
- Shinsegae department store sales were 8.2 trillion KRW in 2023, +7.1%.
- Hyundai Department Store sales hit 6.5 trillion KRW, up 9.3% YoY.
- Beauty product sales in retail grew 11.2% to 28 trillion KRW in 2023.
- Automotive retail sales value was 92 trillion KRW in 2023.
- Furniture and household goods sales rose 5.9% in 2023.
- Q2 2024 retail sales up 2.7% YoY to 130 trillion KRW.
- Pharmacies retail sales totaled 22.1 trillion KRW in 2023, +6.4%.
- Sports goods retail sales increased 7.8% to 15 trillion KRW in 2023.
- Online pure-play sales performance was 45% of total e-commerce in 2023.
- Coupang's 2023 net revenue was 24.9 trillion KRW, up 20%.
- 11st sales reached 5.6 trillion KRW in 2023.
- Gmarket marketplace sales volume grew 12% in 2023.
Sales Performance Interpretation
South Korea's retail scene is a split-screen of modern indulgence and traditional decline, where consumers are eagerly splurging on luxury bags and electronics while letting their TVs and local market stalls gather dust.
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