SEOUL, February 10 (AJP) - Temu, the Chinese e-commerce platform owned by PDD Holdings, is preparing for a direct market entry into South Korea, a move that could further shake up the country’s already competitive online retail sector.
The company has begun recruiting local staff and reviewing logistics contracts, according to retail industry officials on Monday.
Since late last year, Temu has been hiring South Korean employees for key positions in human resources, administration, marketing, and logistics, with several roles already filled.
Currently, the company’s last-mile delivery operations rely on multiple customs clearance partners, primarily CJ Logistics and Hanjin. However, Temu is now working to establish an integrated logistics system through an open bidding process involving major logistics providers.
Temu launched its Korean-language site in July 2023 and formalized its presence in February 2024 with the creation of its local entity, Whaleco Korea LLC.
The platform has experienced rapid growth, with its monthly active users reaching 8.23 million in January - placing it third in the market behind Coupang (33.02 million) and AliExpress (9.12 million).
Industry analysts note that Temu’s approach echoes AliExpress’s successful expansion strategy in South Korea, which began with the launch of a localized website in 2019, followed by local incorporation and staff recruitment.
The timing of Temu’s expansion also coincides with political uncertainties in the United States. Some observers speculate that Temu may be looking to solidify its position in South Korea’s 242 trillion won ($181 billion) e-commerce market as a hedge against potentially tougher regulatory conditions in the U.S.
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