The Growth of Chinese Global E-commerce Platforms in South Korea and the Impact on Domestic Firms

• Published in: 무역연구, 20(6) pp. 59 - 77
• Main Authors: 김리아, 최창용
• Format: Journal Article
• Language: English
• Published: 한국무역연구원 31.12.2024
• Subjects: 무역학
• ISSN: 1738-8112; 2384-1958
• DOI: 10.16980/jitc.20.6.202412.59

Purpose – This study seeks to explore the influence of major Chinese e-commerce platforms with global reach, such as AliExpress, Temu, and Shein, on South Korean firms. Collectively termed ‘Altesh’, a name coined in South Korea reflecting growing interest, these platforms are often described as reshaping the domestic e-commerce landscape. Design/Methodology/Approach – For the analysis, this study employs an Ordinary Least Squares (OLS) regression model to evaluate the impact of Altesh’s growth, using Google search volume as a proxy for the independent variable, on domestic firm performance, including revenue, operating profit, and employment. Findings – The analysis finds that while Altesh’s growth has no significant impact on revenue, it positively influences operating profit and workforce size. This suggests that competition from global platforms may drive domestic firms to improve efficiency, enhance competitiveness, and expand employment, demonstrating the potential benefits of a competitive global environment. Research Implications – This study provides a pioneering empirical analysis of the debated impacts of Chinese e-commerce platforms, a subject of growing relevance both in Korea and globally. It highlights the need for balanced policies that address the dual challenges posed by global e-commerce platforms, respecting consumer choice and supporting domestic businesses, while fostering competitiveness and growth instead of relying solely on restrictive measures. KCI Citation Count: 0