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South Korea probes data protection by e-commerce platforms like AliExpress, Temu
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South Korea probes data protection by e-commerce platforms like AliExpress, Temu
Mar 7, 2024 1:32 AM

SEOUL, March 7 (Reuters) - South Korea's personal data

protection watchdog said on Thursday it is looking into consumer

data practices of major overseas shopping platforms, as South

Korean use of Chinese e-commerce platforms like Alibaba's ( BABA )

AliExpress and Temu jumped.

The Personal Information Protection Commission said it has

been investigating overseas e-commerce platforms since last

month, after a parliament audit last year raised questions about

data handling by platforms such as AliExpress and PDD Holdings' ( PDD )

international facing discount e-commerce platform Temu.

It is checking the appropriateness of their personal

information processing policies, overseas transfers, and safety

measures, and will take steps if there are any violations of

South Korean law, the commission said in a statement.

The announcement follows South Korea's antitrust regulator,

Fair Trade Commission (FTC), sending inspectors to the office of

AliExpress's South Korean unit last week to probe the platform's

consumer protection practices, according to Yonhap news agency.

The FTC, Alibaba ( BABA ) and Temu did not immediately respond to

requests for comment.

South Koreans' e-commerce purchases from China including

from platforms like AliExpress and Temu rose 121% on year in

2023 to 3.3 trillion won ($2.48 billion), taking up nearly half

of its total overseas e-commerce purchases, according to

Statistics Korea data.

AliExpress, which began services in South Korea in 2018,

invested about 100 billion won in the country in 2023 to expand

its footprint, Daishin Securities analyst Lee Jee-eun said.

Investors are watching whether it and other Chinese

e-commerce platforms' fast user growth in South Korea will

affect established players such as Naver Shopping

and Coupang ( CPNG ), although faster shipping and easy returns

of local firms may keep the influence of Chinese platforms'

price competitiveness at bay, Seoul-based analysts have said.

($1 = 1,330.4600 won)

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