The media reports that Alibaba Group intends to invest $1.1 billion in South Korea.
It is currently known that the Chinese business giant plans to earmark the mentioned financing within the next three years. Also, according to information media exposure, part of the investment funds will be spent on the implementation of a project to build a logistics center in South Korea. Moreover, as part of a planned financial initiative, the Chinese group of companies intends to expand its business activities in the mentioned country.
The media reported on the plans of Alibaba Group, referring to the content of the document on the strategy of this organization. The mentioned document also indicates that the Chinese e-commerce giant intends to allocate $200 million in investment funds for the construction of a logistics center in the current year. According to preliminary information, in this case, it means the construction of an object of appropriate functional purpose on the territory of South Korea, but these data have not yet been confirmed at the official level. The Chinese e-commerce giant considers the logistics center as a kind of platform for assisting small and medium-sized businesses. It is expected that the operation of this facility will allow South Korean companies belonging to the mentioned categories in terms of such criteria as the scale of their activities to improve the efficiency of selling their products abroad.
Alibaba Group has not yet responded to a media request regarding plans to invest in the mentioned country.
As for the official statements of the Chinese e-commerce giant, this business structure announced its intention to finance efforts aimed at improving consumer protection mechanisms in South Korea. It is worth noting that this month the South Korean antitrust regulator began an on-site inspection of the AliExpress online retail store, which is part of the ownership structure of the Alibaba Group. In this case, the reason for the watchdog’s actions was the suspicion of the involvement of the mentioned virtual platform in violation of consumer protection commitments. The regulator plans to find out how the online retail store, owned by the Chinese e-commerce giant, fulfills its responsibilities to ensure the implementation of those rights of buyers that are provided for by the current legislation of South Korea on trade in virtual space and relevant regulations.
The watchdog drew close attention to the activities of AliExpress after complaints were received from consumers regarding this online platform. Last year, the number of relevant complaints amounted to 465. It is noteworthy that in 2022 this figure was 93. Complaints related to errors made by the online retail store when making deliveries. Also, consumer grievances were related to problems when canceling orders. Moreover, the reason for some complaints was the lack of information about deliveries.
Government data shows that in February of the current year, the number of AliExpress customers in South Korea reached 7.18 million people. It is worth noting that in 2022, the user base of the online retail store in this country was 3.36 million people.
As we have reported earlier, Alibaba Group Seeks Middle East Partners.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
