Amazon is rumored to be planning to enter the Korean online retail market. A report published by the Korean Times pointed to the fact that the company has advertised 48 new positions at its Seoul office, suggesting the e-commerce behemoth is gearing up for launch.
Amazon currently operates in Korea as a tech infrastructure business, Amazon Web Services. Although the US online marketplace is yet to reveal its plans to launch onto the Korean retail scene, analysts are already speculating about the impact its arrival would have on existing businesses in the space, such as G-Market and Auction.
“The online market is expanding in size at a rapid pace, but the growth rate for the offline industry remains tepid,” an industry source told the Korea Times. “This is because more customers are looking to e-commerce platforms and online shopping services due to convenience and relatively cheaper prices. Amazon will pose a bigger challenge in particular to offline retailers such as department stores or hypermarket chains.”