K-Consumer Goods Cross-Border Sales Surge, KOTRA Says Logistics Optimization is Key

by SEONGJUN JO Posted : July 1, 2026, 11:04Updated : July 1, 2026, 11:04
KOTRA headquarters
KOTRA headquarters [Photo: KOTRA]

As the popularity of K-culture drives rapid growth in exports of consumer goods such as cosmetics, fashion, and merchandise, logistics management has emerged as a critical issue. Due to the characteristics of small, multiple, and international shipments, optimizing the entire process from payment and export declaration to customs and returns is essential for reliably delivering products to overseas consumers.

According to industry sources, KOTRA has published a guidebook titled "Trends and Utilization Strategies for Cross-Border Export Logistics." This document includes insights into logistics challenges and solutions in 19 major countries.

Cross-border exports have grown by 181% over the past six years. The range of export destinations has diversified beyond major markets like the United States, China, and Japan. The share of exports to countries outside these major markets increased from 14% in 2020 to 22% in 2025. K-beauty, K-pop merchandise, and fashion items account for 89% of total sales.

The government views cross-border shopping as a means to expand consumer goods exports. At a public-private export expansion meeting held on June 24, the Ministry of Trade, Industry and Energy announced plans to foster ten representative cross-border shopping platforms for K-consumer goods and outlined support packages for logistics, payment, and marketing.

The retail sector reports that K-consumer goods cross-border shopping is evolving from a one-time wave of Hallyu consumption into a repeat purchase market, where delivery speed and return convenience are key factors influencing brand repurchase rates.

KOTRA has identified major challenges for cross-border companies, including overseas payment, export declaration, customs clearance, and B2C logistics. Issues such as a lack of local payment methods and additional shipping costs lead to cart abandonment, while customs clearance discrepancies can result in export performance omissions. Varying customs standards by country often lead to delays and returns, and inadequate exchange and return infrastructure frequently results in local disposal or increased logistics costs.

The guidebook provides recommendations for tailored payment methods for overseas consumers, the use of integrated payment platforms, reporting methods for export performance recognition, and trends in duty-free systems by country. In collaboration with the Seoul Regional Postal Office, KOTRA analyzed 143 customs clearance challenges across 33 countries and included information to reduce delays and returns.

The guide also incorporates logistics efficiency strategies utilizing AI, such as analyzing order data to establish free shipping criteria by country and managing inventory across countries. KOTRA has also analyzed logistics processes for 66 major global platforms to propose strategies for reducing shipping costs and inventory.

Alongside the publication of this material, KOTRA has established an "Export Logistics Collaboration Network" involving 14 companies across various fields, including express delivery, certification, trademark rights, customs, export declaration, and overseas payment.

KOTRA President Kang Kyung-sung stated, "In the global cross-border shopping market, the key competitive advantage is not just discovering excellent products but also who can deliver them faster and more conveniently. We will work to establish a global B2C logistics ecosystem that enables small and medium-sized enterprises to reach consumers worldwide despite complex non-tariff barriers and customs impacts."



* This article has been translated by AI.