Government to strengthen authentication rules for overseas e-commerce purchases

A person parks a bicycle in front of Alibaba's office in Beijing, China. [AP]

The South Korean government plans to impose stricter certification requirements on certain products purchased directly overseas to protect domestic consumers and retailers.
When purchasing products from overseas e-commerce providers such as Amazon, AliExpress, and Temu, children's products such as hydrothermal mattresses and electronic devices must carry the Korea Certification (KC) mark. KC is a mandatory safety mark in South Korea. This applies to various imported products sold in the Korean market.
The move comes as Chinese e-commerce operators are rapidly increasing their presence in South Korea's e-commerce market, raising concerns about the lack of safety regulations overseeing imported goods from abroad and the sluggish growth of domestic platforms. It was held in the midst of

Fair Trade Commission (FTC) Chairman Han Ki-jeong (center) poses with AliExpress Korea CEO Ray Zhang (right) and WhaleCo Korea CEO Qin Sun after signing a voluntary security agreement in Seoul. . [YONHAP]

The Government Policy Coordination Office and related agencies announced on Thursday that items closely related to consumer health and safety, such as electrical products, household appliances, and children's products, will be required to obtain the KC mark. Without this certification, these items are prohibited from entering the Korean market.
Strollers, frames for children's glasses and sunglasses, chargers, and lithium secondary batteries are also eligible.
The government is also considering whether to revise the tax exemption system in order to eliminate discrimination against domestic businesses.
Currently, Korean consumers can benefit from tax exemption on products purchased directly from overseas that cost less than $150.
Korean retailers have expressed concern that the current system discriminates against domestic e-commerce operators, as comparable products purchased from Chinese websites are at least 20 to 30 percent cheaper.
In order to prevent incidents of exploiting loopholes in the tax exemption system, crackdowns on overseas websites will also be strengthened.

tem logo [JOONGANG ILBO]

According to the Prime Minister's Office, Koreans' spending on overseas direct purchases in 2023 will increase by 27% from the previous year to 6.8 trillion won (approximately $4.9 billion), due in part to a significant increase in the use of Chinese websites. ).
As of February 2023, in the domestic e-commerce market by number of app users, Coupang was ranked first, followed by Gmarket, followed by AliExpress and Temu. secured 2nd and 3rd place respectively.
By the end of this year, the government will step up monitoring of dangerous products distributed and sold on websites and encourage e-commerce operators to set up domestic agencies to respond to consumer complaints.

Written by Choi Hye Jin [choi.haejin@joongang.co.kr]