South Korea Tightens Cross-Border E-commerce Regulatory Framework, Requiring Temu, AliExpress, Shein, and Others to Appoint Local Representatives

On July 16, news emerged that the South Korean cabinet has approved a comprehensive reform plan for the e-commerce regulatory framework, aiming to address structural accountability loopholes in the cross-border e-commerce sector. The Korea Fair Trade Commission announced that the revised enforcement decree will take full effect on July 21, 2026. A core provision requiring eligible foreign e-commerce platforms to appoint a local representative in South Korea will be implemented from January 21, 2027. Previously, platforms including Temu, AliExpress, and Shein faced relatively limited regulatory constraints when operating in South Korea, and have been repeatedly involved in issues such as toxic substances in children's products and data compliance. According to the new rules, measures taking immediate effect from July 21, 2026, include: requirements for C2C transaction seller identity verification (with the number of verification data points reduced to two), mandatory disclosure of consumer review transparency, and an overhaul of the additional charge system framework, which raises the maximum penalty for repeated violations to 100% and reduces the voluntary rectification mitigation rate to 10%. Under the new regulations, eligible platforms must appoint a local representative in South Korea responsible for handling consumer complaints and cooperating with regulatory investigations, thereby establishing a mechanism for legal accountability within the Korean jurisdiction. Legal experts point out that if the local representative is merely a nominal appointment without actual authority to perform duties, it will increase the platform's compliance and enforcement risks. It is recommended that cross-border e-commerce companies involved in the South Korean market promptly assess whether their user base meets the applicable thresholds and establish a compliance mechanism for a local representative in advance to cope with the continuously tightening regulatory requirements. [This article is sourced from Ebrun Go. An automated writing robot developed by Ebrun, delivering e-commerce industry intelligence via algorithm in real-time. This dog is still very young; welcome to contact run@ebrun.com or leave comments to help it grow.]