South Korea Retail Market Report and Forecast 2025-2034

South Korea Retail Market Outlook

The South Korea retail market size was approximately USD 501.12 billion in 2023. The market is assessed to grow at a CAGR of 4.4% between 2024 and 2032, reaching a value of USD 738.32 billion by 2032.

Key Trends in the Market

The retail sector comprises of companies that provide goods and services to their customers. It includes the sales of goods and services through e-commerce platforms, convenience stores, and speciality stores, among others. The retail sector in South Korea is rapidly adopting novel technologies and innovative approaches to enhance the consumer shopping experience.

• The market has seen a significant shift in favour of the e-commerce sector over the past few years. This expansion can be attributed to the ease of access to technology and growing preference for convenient shopping solutions. Thus, the growing penetration of the e-commerce sector in the country, along with advanced technological integration is supporting the South Korea retail market growth.

• The retail sector in the country is dedicated towards enhancing customer shopping experience. Various retailers are experimenting with technologies such as virtual reality and augmented reality to deliver interactive product experiences and personalised solutions to their customers.

• In Korea, convenience store culture is largely prevalent, and a large section of the population relies on these stores to purchase cost-effective yet nutritious and delicious packaged food. Due to their expansive networks, 24*7 operations, and advantages like self-serve freedom offered when experimenting with diverse food inventory, convenience stores have become an essential part of everyday Korean life. GS25, 7-Eleven, and CU are some of the big names.

South Korea Retail Market Analysis

Based on product type, the market is segregated into food, beverage, and tobacco products; personal care and household; apparel, footwear, and accessories; furniture, toys, and hobby; industrial and automotive; electronic and household appliances; and pharmaceuticals and luxury goods, among others. On the basis of distribution channel, the South Korea retail market segmentation includes hypermarkets and supermarkets, convenience stores, speciality stores, and online, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Coupang Co., Ltd. 

• Lotte Corporation  

• LG Electronics, Inc.  

• Hyundai Department Store Group. Co., Ltd.  

• Shinsegae I&C Inc.  

• BGF Group  

• 7-Eleven, Inc. 

• EMART Inc.  

• Costco Korea Co., Ltd.   

• Amorepacific Corporation  

• Others

Market Share by Product Type

Food, beverages, and tobacco products account for a significant South Korea retail market share. This growth can be attributed to the increasing penetration of e-commerce in the grocery sector and increasing consumer preference for convenient services and door-step delivery.

Meanwhile, the domestic demand for electronics and household appliances has been increasing due to high disposable income and tech-savvy nature of the population, thereby providing lucrative growth opportunities to the market. The prominent presence of tech giants including LG, coupled with their increasing investments towards product marketing and modernising retail stores is aiding the market expansion.

Further, Korean culture has a major focus on beauty and fashion, because of which the population is leaning towards premium products and luxury goods available through both physical stores and online channels.

Market Share by Distribution Channel

The leading e-commerce giants have been making investments for improving their platforms and online services to develop more user-friendly interface, to enhance customer shopping experience. The tech-savvy nature of the Korean population and the presence of well-developed IT infrastructure in the country have boosted the popularity of e-commerce platforms, propelling the South Korea retail market demand.

Even though e-commerce platforms have significantly expanded due to the growing inclination towards fast and convenient delivery methods, traditional retail stores including hypermarkets and supermarkets, convenience stores, and speciality stores are commonly preferred due to the consumption and shopping habits of the population and the availability of a range of products and assistance offered by sales professionals in brick and mortar stores.

Competitive Landscape

Coupang Co., Ltd., founded in 2010, is a go-to store that offers an online platform to its customers for a wide range of products, which include foods, groceries, beauty products, electronics, decorative items, travel and everyday consumables, and household goods, among others. One of its most compelling value propositions is its same-day delivery system.

Lotte Corporation is a group of different enterprises and businesses that was founded in 1948. The corporation is widely known for its customer-centric approach. The company also operates in a variety of domains, including construction, food, tourism, finance, and chemicals, among others.

LG Electronics, Inc., a South Korea-based company, has a worldwide presence in over 80 countries. It began as GoldStar in 1958 and has since grown to become the world's second-largest electronics developer. The company has significantly expanded its online presence and manufactures and sells a wide range of electronic products, guaranteeing high quality.

Other South Korea retail market players include Hyundai Department Store Group. Co., Ltd., Shinsegae I&C Inc., BGF Group, 7-Eleven, Inc., EMART Inc., Costco Korea Co., Ltd., and Amorepacific Corporation, among others.

Key Highlights of the Report