The South Korean Fairtrade Commission is playing a lot over Chinese e-commerce giantsCross-border e-commerceThe investigation was conducted by the platform “Temu”, which reflects South Korea’s high concern for fair competition and consumer protection in the e-commerce industry. It is that the investigation focused mainly on whether Temu used false and exaggerated advertising and violated the relevant provisions of the E-Commerce Transaction Act and the Label Advertising Fairness Act. Since the entry of Temu in the Korean market in July 2022, its marketing strategy and customer feedback service issues have become the focus of the investigation.

Disputes in the Korean market.

Temu attracted new users by issuing cash bonuses, a strategy that, while increasing the number of users of the platform in a short period of time, was also controversial due to the promotion of roulette games and similar distribution methods. More importantly, consumers were dissatisfied with issues such as delayed delivery of their products and poor quality, which could affect consumer shopping experience and trust in the platform.

Surveillance of e-commerce platforms in Korea

The Fairtrade Commission’s investigation shows that South Korea is strict about foreign e-commerce platforms entering its markets, especially in protecting consumer interests and ensuring fair competition in the market. The Commission has previously conducted a similar investigation into Alibaba’s Global Express (AliExpress). These actions show that South Korea is committed to creating a fair and transparent e-commerce environment, both domestic and foreign-funded platforms, requiring compliance with local laws.

Impact on Chinese Electronics

The Fairtrade Commission’s investigation may allow China e-commerce platforms to rethink their business strategies in South Korea and other markets around the world, especially in terms of advertising and consumer services. In order to preserve brand image and promote long-term development, these platforms may need to focus more on compliance operations and improve product quality.