Koreas

Feb. 2 (Asia Today) — South Korea’s online shopping market surpassed 270 trillion won (about $188 billion) in 2025, hitting a record high and underscoring a growing divide between fast-growing digital platforms and stagnant offline retailers.

According to the “December 2025 and Annual Online Shopping Trends” released Monday by the National Data Service, online shopping transactions reached 272.3 trillion won (about $188 billion), up 4.9% from a year earlier. Mobile shopping accounted for 211.1 trillion won (about $145 billion), a 6.5% increase. Both figures were the highest since data collection began.

Online shopping growth has been fueled by the rapid expansion of mobile consumption and logistics innovations such as early-morning and same-day delivery. Transaction volumes rose from 94.1 trillion won (about $64.9 billion) in 2017 to more than 100 trillion won (about $68.9 billion) the following year, exceeded 200 trillion won (about $137.7 billion) in 2022 and continued climbing steadily into the 270-trillion-won range (about $188 billion) last year.

The strongest growth came from automobiles and auto-related products, which posted annual transactions of 7.5 trillion won (about $5.22 billion), up 30.5% year-on-year. The increase was driven largely by online sales of electric vehicles, particularly from Tesla, which operates a direct online ordering system. Tesla’s domestic sales reached 59,916 units in 2025, more than double the previous year’s total.

Food-related categories also expanded sharply. Online food service transactions rose 12.2% to 41.4 trillion won (about $28.6 billion), while online food and beverage purchases increased 9.5% to 37.8 trillion won (about $26.0 billion), reflecting consumers’ growing reliance on delivery platforms.

By contrast, offline retail channels showed little momentum. Data from the Ministry of Trade, Industry and Energy showed that sales at 26 major retailers rose 6.8% in 2025, but growth was heavily skewed toward online platforms. Online retail sales jumped 11.8%, while offline sales edged up just 0.4%.

Large supermarkets saw sales fall 4.2% from a year earlier, while convenience store sales grew only 0.1%, effectively stagnating. These sectors, closely tied to everyday household consumption, were hit hardest as shoppers shifted spending online.

Industry analysts attribute the decline to the rapid spread of mobile shopping and fast delivery services, which have reduced foot traffic and average transaction values at brick-and-mortar stores. The traditional “one-stop shopping” advantage of large supermarkets has weakened, while convenience stores have lost their proximity edge to quick-commerce and delivery platforms.

Rising fixed costs, including rent, labor and electricity, combined with weaker consumer demand amid high interest rates and inflation, are further eroding profitability. As a result, the gap between online and offline retail is increasingly seen as a structural shift rather than a temporary trend.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260202010000592

Jan. 30 (Asia Today) — Despite sluggish domestic demand, South Korea’s stock market is surging, driven largely by a semiconductor supercycle led by SK Hynix and Samsung Electronics.

SK Hynix last year posted record sales exceeding 97 trillion won (about $67.6 billion) and operating profit of 47 trillion won (about $32.8 billion), with both its annual and fourth-quarter results reaching all-time highs. Notably, its fourth-quarter operating margin surpassed that of Taiwan’s leading foundry, underscoring not only for growth but also for profitability. Samsung Electronics also reported sales of 333 trillion won (about $232.2 billion) and operating profit of 43 trillion won (about $30.0 billion), up 11% and 33% year on year. Its semiconductor division alone generated 44 trillion won (about $30.7 billion) in sales and 16 trillion won (about $11.2 billion) in operating profit in the fourth quarter.

These earnings surprises were fueled by higher sales of high-value products such as high-bandwidth memory and rising memory prices. On the back of the two chipmakers, the benchmark KOSPI index climbed past 5,200 on Jan. 29. Industry forecasts suggest the semiconductor supercycle could continue this year, with combined operating profit potentially exceeding 200 trillion won (about $139.4 billion) and, in some projections, approaching 300 trillion won (about $209.2 billion) as memory shortages deepen and dominance in the high-bandwidth memory market strengthens.

What is troubling, however, is the extent to which the broader economy relies on this single engine. Although exports topped $700 billion last year, fourth-quarter growth turned negative and annual growth was limited. The semiconductor-centered IT manufacturing sector accounted for most of the country’s modest GDP expansion, implying that without semiconductors overall growth would have been far weaker.

While the semiconductor boom is expected to last at least through this year, stock markets typically price in conditions about six months ahead. The chip-led rally may therefore run into limits later this year. Beyond that point, risks loom. The automotive sector faces uncertainty from Trump-era tariffs and rapid shifts toward autonomous and next-generation mobility. Steel, petrochemicals and batteries are struggling amid oversupply driven by China-led competition.

The previous administration pledged to foster pharmaceuticals and biotechnology as next-generation core industries, but tangible progress has been limited. Building new growth engines ultimately depends on government policy resolve. A recent report by the Korea Institute for Industrial Economics & Trade noted that major powers such as the United States and China are aggressively promoting strategic industries with a wide range of policy tools, while South Korea remains comparatively passive.

Revitalizing industrial policy will require active restructuring of lagging sectors and stronger coordination across ministries. Leaving everything to private initiative is not enough. To secure sustainable growth beyond semiconductors, the government must mobilize far more policy tools to strengthen domestic production and cultivate new core industries.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260129010013700

Kim Keon Hee’s husband, Yoon Suk Yeol, is potentially facing the death penalty over his role in declaring martial law in 2024 while president.

A South Korean court has sentenced former First Lady Kim Keon Hee to one year and eight months in prison after finding her guilty of accepting bribes from the Unification Church, according to South Korea’s official Yonhap news agency.

The Seoul Central District Court on Wednesday cleared Kim, the wife of disgraced ex-President Yoon Suk Yeol, of additional charges of stock price manipulation and violating the political funds act.

Kim was accused of receiving bribes and lavish gifts from businesses and politicians, as well as the Unification Church, totalling at least $200,000.

The prosecution team had also indicted Unification Church leader Han Hak-ja, now on ‌trial, after the religious group was suspected of giving Kim valuables, including two Chanel handbags and a diamond necklace, as part ‌of its efforts to win influence with the president’s wife.

Prosecutors in December said Kim had “stood above the law” and colluded with the religious sect to undermine “the constitutionally mandated separation of religion and state”.

Prosecutor Min Joong-ki also said South Korea’s institutions were “severely undermined by abuses of power” committed by Kim.

The former first lady had denied all the charges, claiming the allegations against her were “deeply unjust” in her final testimony last month.

But she has also apologised for “causing trouble despite being a person of no importance”.

“When I consider my role and the responsibilities entrusted to me, it seems clear that I have made many mistakes,” she said in December.

Kim’s husband, the country’s former President Yoon, was ousted from office last year and has been sentenced to five years in prison for actions related to his short and disastrous declaration of martial law in December 2024.

Yoon could still be facing the death penalty in a separate case.

In 2023, hidden camera footage appeared to show Kim accepting a $2,200 luxury handbag in what was later dubbed the “Dior bag scandal”, further dragging down then-President Yoon’s already dismal approval ratings.

The scandal contributed to a stinging defeat for Yoon’s party in general elections in April 2024, as it failed to win back a parliamentary majority.

Yoon vetoed three opposition-backed bills to investigate allegations against Kim, including the Dior bag case, with the last veto in November 2024.

A week later, he declared martial law.

Kim’s sentencing comes days after former Prime Minister Han Duck-soo was sentenced to 23 years in prison – eight years longer than prosecutors demanded – for aiding and abetting Yoon’s suspension of civilian rule.