Chinese e-commerce platform Temu has secured a large logistics center in South Korea. Following the start of its recruitment of sellers for the open market, which connects sellers and buyers, it is accelerating its direct entry into the Korean market.
According to the retail industry on the 20th, Temu recently signed a long-term lease for a large logistics center in Gurai-dong, Gimpo, Gyeonggi Province.
This logistics center is reported to have a total floor area of about 165,000 square meters (50,000 pyeong) with 1 basement level and 10 above-ground floors, equipped with both standard and cold-chain facilities. The operation of the logistics center is handled by LOTTE Global Logistics, a logistics affiliate of the Lotte Group.
This is the first time a Chinese e-commerce platform has secured a large logistics center in South Korea. AliExpress, which entered the Korean market about four years before Temu, plans to establish a logistics center in South Korea during the first half of this year.
Once the Gimpo logistics center begins operating, the delivery time for products purchased directly from China through Temu is expected to be significantly shortened.
Since last month, Temu has introduced a 'local to local (L2L)' model in the Korean market and is recruiting Korean sellers to participate in its online marketplace. This marks a step forward from its existing method of selling Chinese products in a direct purchase format to directly selling and distributing Korean products.
Facing difficulties in the U.S. market due to the recent U.S.-China tariff war, Temu appears to be eyeing South Korea as an alternative market for a full-scale advance.
The size of the South Korean e-commerce market is the fifth largest in the world, following China, the United States, the United Kingdom, and Japan.
In January, Temu's monthly active users (MAU) in South Korea reached 8.23 million (according to Wise App and Retail’s aggregation), making it the third largest after Coupang (33.02 million) and AliExpress (9.12 million).