AliExpress (Ali), a Chinese e-commerce company, has significantly increased its investment in the South Korean online retail market by raising its registered capital ninefold. The industry suggests this move indicates Ali’s intention to intensify its investments and marketing efforts in South Korea.
According to Ali on April 24, its Korean entity, AliExpress Korea, increased its capital from 4 billion won to 37.4 billion won on April 17. This capital increase comes just two months after a previous increase in February. Ali initially established its Korean branch in August last year with a capital of 100 million won. Since then, the company has aggressively promoted its app with advertisements featuring Korean actor Ma Dong-seok and has implemented policies to waive fees for local sellers to increase their presence on the platform. By offering ultra-low-priced products and distributing cash coupons, Ali achieved the second-highest market share in the South Korean e-commerce market in February.
Some speculate that the company’s substantial increase in capital, along with the initiation of an integrated logistics center, are measures to engage in a serious competitive battle with other e-commerce companies. Ali responded, “This increase in capital is purely for business operations in the Korean market, and it is difficult to say that it is directly related to the construction of a logistics center.”
