South Korea signs agreement with Temu and AliExpress to focus on product safety issues

[Ebrun original] On May 15th, according to foreign media reports, the Fair Trade Commission of South Korea (KFTC) stated that the South Korean government recently signed an agreement with Alibaba's global AliExpress and Temu, a subsidiary of Pinduoduo Holdings, to promote product safety. With AliExpress, Temu, and other Chinese e-commerce platforms significantly expanding their user base in South Korea, regulatory agencies in South Korea are strengthening their scrutiny of them.

The signing ceremony was held on Monday in the Longshan District of downtown Seoul, and important figures attending the ceremony included Ray Zhang, General Manager of AliExpress South Korea, Qin Sun, Chief Executive Officer of Whaleco, the local business representative of Temu, and Han Ki-jeong, Chairman of the Fair Trade Commission (KFTC).

This agreement was reached in the growing concern over safety issues. Recently disclosed events by the Seoul Metropolitan Government have heightened these concerns: toys sold on Chinese e-commerce platforms may contain harmful substances, prompting regulatory agencies to take urgent action.

According to the voluntary agreement signed this time, AliExpress and Temu have committed to working closely with the South Korean government to address safety issues head-on. This includes actively monitoring any safety-related issues and promptly removing any products flagged as harmful by regulatory agencies. Chinese retailers should also inform consumers of such information, and the Seoul government will inspect whether each platform has thoroughly implemented appropriate follow-up measures.

It is reported that in the first quarter of 2024, the quarterly peak of goods directly purchased by South Korean consumers from China reached a staggering 938.4 billion South Korean won (approximately US$719 million), a significant 54% increase from the previous year. The agreement signed by the South Korean government and foreign online platform operators on product safety is also the first of its kind domestically. Temu representatives have made it clear to the media that the platform will fulfill the agreement, continue to strengthen monitoring, and prevent the circulation of harmful goods such as overseas recalls in the South Korean market.