Online Shopping Between January And July Exceeded $85.9 Billion In South Korea

The amount of online food delivery services such as pizza and chicken was 2.377.8 trillion won, up 72.5 per cent year-on-year. (Rowan Freeman/Unsplash)

SEOUL, South Korea — Online shopping transactions exceeded 100 trillion won ($85.9 billion) from January to July in 2021. This is because indoor activities have increased due to the spread of Covid-19 again and the Tokyo Olympics.

As per Statistics Korea’s “Online Shopping Trends in July” report on the third, online shopping transactions in July rose 24.9 percent year-on-year to 16.1996 trillion won ($13.9 billion), posting the most enormous amount since 2001 when related statistics began.

As a result, online shopping transactions increased to 108.784 trillion won ($93.4 billion) from January to July this year, surpassing 100 trillion won ($85.9 billion).

By product group, the amount of online food delivery services such as pizza and chicken was 2.377.8 trillion won ($2.04 billion), up 72.5 percent year-on-year.

It is the largest amount since 2017.

“The transactions of delivery foods and instant foods have increased with the hosting of the Tokyo Olympics and the spread of Covid-19,” said Statistics Korea.

As seasonal home appliance sales such as air conditioners increased due to the heatwave, transactions of home appliances, electronics, and telecommunication devices also increased 48.3 percent year-on-year to 2.623 trillion won ($2.25 billion).

Transactions of general food and beverage (30.0 percent) and household goods (17.4 percent) also significantly increased.

However, the transactions of cultural and leisure services (-11.0 percent) and cosmetics (-2.2 percent) decreased as outdoor activities have shrunk due to Covid-19.

“Compared to July 2020, the online shopping transaction value of ‘Cosmetics’ declined by 2.2 percent,” the report said.

“Whereas, the online shopping transaction value of ‘Food services,’ ‘Home electric appliances, electronic and telecommunication equipment and ‘Food & beverages’ grew by 72.5 percent, 48.3 percent, and 30.0 percent, respectively.”

Mobile shopping transactions rose 33.8 percent year-on-year to 11.7139 trillion won ($10.06 billion), the highest amount among online shopping transactions.

The percentage of mobile shopping transactions was also the highest ever at 72.3 percent.

In particular, 97.4 percent of the total transaction amount of food delivery services was mobile shopping transactions. It is analyzed that customers usually order food using mobile delivery apps.

“Compared to June 2021, the online shopping transaction value of ‘Motor vehicles, and motor vehicle parts & accessories’ fell by 67.2 percent,” the report said.

“In the meantime, the online shopping transaction value of ‘Food services’ and ‘Home electric appliances, electronic and telecommunication equipment’ increased by 20.6 percent and 15.3 percent, respectively.”

Statistics Korea also said that the Consumer Price Index was 108.29 (2015=100) in August 2021. The index increased 0.6 percent from the preceding month and rose 2.6 percent from the same month of the previous year.

(With inputs from ANI)

Edited by Saptak Datta and Praveen Pramod Tewari



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