K-Distribution Bets on Overseas Expansion... Government to Provide Comprehensive Support Including Cross-Border E-Commerce

Ministry of Trade, Industry and Energy and KOTRA Launch Support Program for Distribution Companies’ Overseas Expansion
Thirteen Companies Selected Including Olive Young, Emart, and Musinsa
“Fostering Distribution Platforms as Export Channels for K-Consumer Goods”

Yonhap News

The Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA) are stepping up efforts to support the overseas expansion of Korea's domestic distribution industry. Leveraging the spread of the Korean Wave and the growth of global online consumption, their strategy is to develop distribution platforms into “export outposts.”

On April 13, the Ministry held a signing ceremony for the “Distribution Companies Overseas Expansion Support Project” at KOTRA’s headquarters in Seoul, where it discussed strategies for entering overseas markets with the 13 distribution platform companies that were ultimately selected.

This initiative was launched to overcome the spatial limitations of the distribution industry and expand exports of K-consumer goods. After a public call and assessment in February, a total of 13 companies were selected, including eight offline distribution network companies and five online cross-border e-commerce firms.

Major distribution companies such as Olive Young, Emart, Musinsa, Shinsegae Department Store, and Lotte Homeshopping were included in the offline sector, while companies focused on cross-border e-commerce, such as Kurly and Ktown4u, were named in the online sector.

During the strategy meeting, the companies shared customized entry strategies that reflected each company’s strengths and the characteristics of overseas markets. Each company presented plans analyzing promising target countries, consumer trends, and distribution structures, and relayed to the government various obstacles faced in expanding overseas, including regulations, logistics, and certification.

The government announced plans to strengthen support for every stage of overseas expansion, including market research, marketing, logistics, and certification, with KOTRA playing a central role. In particular, the focus will be on fostering a cross-border e-commerce ecosystem in the online sector, and establishing export bases for K-consumer goods in the offline sector by utilizing local distribution networks.

A Ministry official stated, “Now is the time for distribution platforms to secure a foothold in the global market in line with the growing demand for K-consumer goods. We will foster distribution platforms as new export channels and actively support small and medium-sized enterprises in their overseas expansion.”

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