The South Korean e-commerce market is heating up with intensifying competition, and Temu appears poised to join the fray. The cross-border platform, known for its aggressive low-price strategy, is quietly preparing to expand its operations in South Korea.
Since late last year, Temu has initiated local hiring for key positions including general affairs, marketing, and logistics specialists—a clear signal of its commitment to establishing a stronger foothold in the market. Industry sources indicate the company is actively building an integrated logistics network in South Korea, with plans to strengthen partnerships with domestic logistics firms through competitive bidding processes.
Stealthy Market Entry
Temu first entered the South Korean market through cross-border shopping in July 2023, followed by the establishment of its local subsidiary Whaleco Korea in February 2024. However, the company had previously maintained minimal local staffing. Currently, major Korean logistics providers like CJ Logistics and Hanjin Transportation handle Temu's product distribution in the country.
When contacted for comment, Temu's Seoul-based spokesperson declined to confirm specific strategic moves, stating only that the company could not disclose operational details at this time.
Evolving Business Model
Simultaneously, Temu is undergoing significant changes to its business approach. In response to shifting tax regulations, the platform is actively promoting its "semi-managed" model, prominently featuring these products across its interface. Notably, Temu has relaxed its strict pricing requirements for semi-managed products, which previously mandated prices 30-40% below comparable Amazon listings. This policy shift grants merchants greater pricing flexibility to adapt to market conditions.
More significantly, internal discussions are underway about accelerating the launch of third-party seller marketplaces. If implemented, this would transform Temu from a purely first-party retail model to a hybrid platform combining direct sales with third-party merchants. Sources suggest Temu plans to provide operational support for marketplace sellers, with the new model potentially launching as early as March.
These strategic moves demonstrate Temu's accelerated efforts to establish itself in South Korea's competitive e-commerce landscape through diversified business approaches. Whether the platform can successfully carve out market share remains to be seen, but its preparations suggest an imminent escalation in the region's e-commerce wars.