Gate News message, April 22 — Chinese ecommerce platforms AliExpress and Temu have expanded significantly in South Korea’s market during the first quarter of 2026, each surpassing domestic competitors as consumers seek cheaper goods amid inflation and weakening consumer spending.
According to WiseApp Retail, AliExpress recorded 8.57 million monthly active users and Temu reached 8 million in the January-March period, both outpacing local rivals including 11street and Gmarket. Despite this growth, Coupang remained the market leader with 33.25 million users. Temu also led all shopping apps in download volume. South Korea’s consumption spending fell 0.4% in 2025, contributing to the appeal of cheaper alternatives.
Chinese fashion app Shein also gained traction, nearly tripling its younger consumer base to 1.22 million in January. The expansion has prompted local regulatory scrutiny; South Korea’s data privacy watchdog fined AliExpress 2 billion won (approximately $1.4 million USD) over overseas transfers of customer data to third-party sellers, with Temu potentially facing similar enforcement actions.
To strengthen their local presence, both platforms are investing in logistics infrastructure. Temu signed a long-term lease for a 165,000-square-meter logistics center in Gimpo near Seoul, while AliExpress expanded its partnership with CJ Logistics, a major South Korean delivery company. Analysts attribute the accelerated expansion partly to changes in U.S. trade policy; a recent U.S. executive order eliminated the tariff exemption for shipments under $800, reducing profitability for Chinese shopping platforms in the American market and driving them to prioritize other regions.