2024-03-17 23:40:21
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Entered2024.03.18 08:40 Modified2024.03.18 09:25
“It will take more time to develop effective regulations.”
“Domestic companies do not show clear strengths other than Coupang.”
Actor Ma Dong-seok is a promotional model for the Chinese e-commerce app ‘Ali Express.’ / Photo = Hankyung DB Daol Investment & Securities analyzed on the 18th that the reason why Chinese e-commerce companies are actively advancing into Korea is because “it is geographically close and regulations are still weak.” He pointed out that in order to combat this, domestic companies must utilize their own strengths.
On the 13th of this month, the Fair Trade Commission announced ‘Comprehensive consumer protection measures related to overseas online platforms’, a policy to strengthen regulations on Chinese e-commerce companies. “Chinese e-commerce platforms are actively entering the domestic market,” said Kim Ha-jeong, a researcher at Daol Investment & Securities. “The day after this announcement, Alibaba announced plans to enter the Korean market by investing 1.5 trillion won over three years.” . He cited two reasons for the increased entry of Chinese e-commerce companies into the country. The first is that it takes a long time for effective regulations to become law. He also mentioned the geographical advantage of being close to China. Researcher Kim analyzed, “For effective regulation, the revision of the e-commerce law is key, but it appears that a lot of time will be needed. In addition, the geographical advantage is clear, so the entry of Chinese e-commerce companies into the country is increasing.”
He continued, “Europe can impose fines of up to 6% of annual sales on Chinese companies through the Digital Services Act (DSA), which took effect in February of this year,” and added, “The United States can also impose effective regulations by applying violations of the Uyghur Forced Labor Prevention Act.” “It does,” he added.
He predicted that Chinese e-commerce companies will expand their business by attracting domestic intermediate suppliers. It is reported that Alibaba will also support them with 130 billion won of the total investment, and 260 billion won will be used for the logistics center. In the e-commerce industry, it is common for product suppliers to sell products through a chosen platform and pay a commission to the company. Researcher Kim explained, “Alibaba is attempting so-called ‘seller lock-in’ by providing domestic suppliers with strengths beyond price appeal,” adding, “This is an important time for domestic e-commerce companies to have strong defense capabilities.” did. He added, “In particular, compared to Coupang, which has proven its competitiveness in delivery once again, other domestic companies lack distinct strengths.”
Seong Jin-woo, Hankyung.com reporter [email protected]
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