Temu's operator, PDD Holdings, sets up entity in Korea

The Chinese e-commerce platform operator said it has established a Korean affiliate to handle local regulations and issues.

The operator of Chinese e-commerce platform Temu said on Tuesday that is has set up a business entity in Korea to facilitate expansion in the local online market in pursuit of the dominant Coupang.

PDD Holdings established Whaleco Korea with initial capital of 100 million won (US$74,000) in Jongno, central Seoul, according to its public relations agency in Korea.

"We plan for this company to gradually take on local functions, including collaborating with local service providers [or local partner companies]," PDD Holdings said in a statement.

The company will also be able to help respond effectively to complaints filed over products purchased from the Temu platform, a company spokesperson said over the phone.

Complaints concerning Chinese e-commerce companies, including Alibaba Group's e-commerce retail platform AliExpress, have risen sharply as they are aggressively marketing products to increase their shares of the Korean market.

Major grievances are about product quality, late or missed deliveries, mistaken deliveries, lack of products, no reflection of order cancellations following delivery delays and a lack of tracking information on the delivery path and time.

PDD Holdings entered the Korean market with the Temu platform in July of last year after breaking into the United States, Europe and Asia from September 2022.

Alibaba set up its Korean entity, AliExpress Korea, last August.

Yonhap