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)