Naver Supports Growth of Small Businesses... Transaction Volume Up 90% Year-on-Year

[Asia Economy Reporter Buaeri] The transaction volume of small and medium-sized enterprises (SMEs) through Naver Smart Store has increased by 90% compared to the previous year.

According to the 'D-Commerce Report 2020' released on the 20th, the sales generated by SMEs have grown to account for 34% of the domestic GDP, establishing them as a key economic player in South Korea.

Based on Naver's data-driven support program, the 'D-Commerce Program,' the growth rate of SMEs equipped with digital competitiveness is rapidly increasing.

As of the first half of 2020, the total transaction volume of Naver Smart Store grew by 60% compared to the previous year, and the transaction volume of SMEs with annual sales under 300 million KRW increased by 90% during the same period.

Naver explained, "The growth rate of SMEs surpasses the overall growth rate of Naver Smart Store, playing a pivotal role in driving the growth of Smart Store."

The number of sellers generating sales on Naver Smart Store is also steadily increasing. Sellers with sales on Naver Smart Store have shown an average annual growth rate of 53%, increasing 8.5 times from 2014 to 2019.

Compared to 2014, the number of sellers with monthly sales between 10 million KRW and less than 50 million KRW increased 14 times, those with monthly sales between 50 million KRW and less than 100 million KRW increased 26 times, and sellers generating monthly sales over 100 million KRW increased 28 times by 2019.

In particular, 48% of sellers generating sales are entrepreneurs who have challenged online business for the first time within one year of joining. A Naver official stated, "It can be confirmed that Smart Store has established itself as a technological platform that stably supports SMEs' online startups and early business growth."

Digital growth through Naver Smart Store has also been achieved in non-metropolitan areas.

Looking at growth rates by region, as of the first half of 2020, the average sales growth rate across all regions compared to the previous year was 68.8%. Growth rates in non-metropolitan areas such as Sejong Special Self-Governing City (128%) and Gyeongsang Province (102%) exceeded the average growth rate.

Professor Byungjun Yoo of Seoul National University's Department of Business Administration, who led the 'D-Commerce Report 2020' research, said, "Naver has consistently worked to enhance SMEs' digital competitiveness through data-driven support programs and technological platforms such as Smart Store. As a result, the increase in SME transaction volume, maturation of the business ecosystem, and other outcomes of SME digital transformation are visibly progressing."

This content was produced with the assistance of AI translation services.