South Korea Online Sales Hit Record on Tesla Demand

South Korea's online shopping sales rose 13.3% year on year to a record 25.6 trillion won (US$17.4 billion) in March, driven by Tesla orders and higher spending on food services and groceries, according to Yonhap.

Record Online Sales Figures

The monthly total was up 3 trillion won (US$2.06 billion) from a year earlier and was the highest since the ministry began tracking the data in 2017.

Mobile purchases through smartphones and tablets climbed 11.6% to a record 19.4 trillion won (US$13.2 billion).

Tesla's Impact on Auto Sales

Sales of automobiles and auto accessories jumped 109.9%, helped by Tesla models sold through online ordering systems. Tesla's online ordering contributed to a 330% year-over-year sales increase for the company in March. Tesla accounted for approximately 69% of imported electric vehicle registrations in South Korea during the same period.

Competitive Response and Market Pressures

Tesla started selling vehicles through an online platform in South Korea in 2017. Other automakers have begun testing online sales channels, including BMW, Mercedes-Benz, Polestar, and Hyundai Motor Co.

However, the record ecommerce performance came amid strain on some South Korean retail platforms. TMON Inc. and WeMakePrice Co., online retail platforms owned by Singapore-based Qoo10 Pte., filed for court receivership amid liquidity troubles. Court receivership is a legal process similar to court-supervised restructuring.

Hyundai faces internal hurdles in moving fully online because its company-run sales network employs workers in the carmaker's union, whereas Tesla does not operate under that structure.