South Korea investigates data protection issues on e-commerce platforms such as AliExpress and Temu

South Korea investigates data protection issues on e-commerce platforms such as AliExpress and Temu is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• South Korea’s personal data protection watchdog is doing an ongoing survey on consumer data usage on major overseas shopping platforms like AliExpress and Temu.
• The Personal Information Protection Commission claimed in a statement that they are checking the appropriateness of their personal information handling policies, overseas transfers, and security measures, and will take measures if there are any violations of Korean law.
• Investors are watching to see if AliExpress and other Chinese e-commerce platforms’ fast growth in South Korea will affect established players such as Naver and Coupang.

OUR TAKE
With the increasing number of Koreans using Chinese e-commerce platforms such as Alibaba (9988. HK) opening new tabs AliExpress and Temu jumped. South Korea’s data protection watchdog stated on Thursday, that they are looking into consumer data practices of major overseas shopping platforms.
—Jennifer YU, BTW reporter

Investigation of PDD

The Personal Information Protection Commission said they have been investigating overseas e-commerce platforms since last month, with a parliamentary audit last year raising questions about data processing at platforms such as AliExpress and PDD Holdings'(PDD. o), opens new tab international facing discount e-commerce platform Temu.

According to the commission, they are checking the appropriateness of their personal information processing policies, overseas transfers, and safety measures. If there are any violations of South Korean law, the commission will take action.

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The ongoing Investigation

As mentioned by Yonhap news agency, the announcement follows South Korea’s antitrust regulator, the Fair Trade Commission (FTC), dispatching inspectors to the office of AliExpress’s South Korean unit to investigate the platform’s consumer protection measures. However, The FTC, Alibaba, and Temu did not immediately respond to requests for comment.

AliExpress in Korea

South Korea’s e-commerce purchases from China, including on platforms such as AliExpress and Temu, rose 121% on-year to 3.3 trillion won ($2.48 billion) in 2023, accounting for nearly half of its total overseas e-commerce purchases, according to Statistics Korea data.

Securities analyst Lee Jee-eun believes that AliExpress began offering its services in South Korea in 2018 and has invested around KRW 100bn in South Korea in 2023 to expand its presence.

Future competition

Korean investors are watching to see if the rapid user growth of Chinese e-commerce platforms in South Korea will affect established players such as Naver (035420. KS) and Coupang (CPNG.N). However a Seoul-based analysts said faster shipping and easy returns of local firms may keep the influence of Chinese platforms’ price competitiveness at bay.