Aliexpress moves forward in plans for Korean logistixlcs center

On the 3rd, AliExpress Korea CEO Ray Zhang is being interviewed at Alibaba Group’s Xixi Campus. [Courtesy of Alibaba]

Aliexpress, a subsidiary of Alibaba Group, is advancing in its plan to build a logistics center in South Korea. Although details regarding the location are still under discussion, the center is expected to support both Korean and international operations, including direct overseas purchasing, reverse direct overseas purchasing, and local deliveries.

Aliexpress’ primary workspace, known as “Ali Circle,” is located in the XiXi Campus in Hangzhou. The newly opened section, completed in May at a cost of 6.7 billion yuan (about 1.26 trillion won), spans 980,000 square meters and houses 30,000 employees, representing 75 percent of the workforce on the campus. The space reflects Alibaba’s unique business approach, as multiple e-commerce platforms work both independently and collaboratively to expand into international markets.

Aliexpress also has ambitious plans to establish a significant presence in Korea’s e-commerce market, aiming to capture half of the nation’s online shopping consumers by 2027. This goal was outlined during a press conference held last week at the company’s headquarters in Hangzhou, China.

“We expect more than 50 percent of Korean online shoppers to be using Aliexpress within three to five years,” ppAliexpress Korea CEO Ray Zhang said. The strategy focuses on providing consistently low prices and a wide variety of products, not only from international sellers but from Korean companies as well.

Aliexpress currently ranks second in the Korean e-commerce market by monthly active users (MAU), trailing only Coupang. According to data from mobile app analytics service Wiseapp Retail Goods, Aliexpress recorded 9.07 million MAUs in August 2024 compared to Coupang’s 31.38 million. Korea’s e-commerce user base is estimated at around 34 million, meaning Aliexpress aims to attract 17 million users by 2027.

To support its growth, Aliexpress will expand beyond direct purchasing, introducing a reverse direct sales platform (B2C export) at the end of September. The new platform will help Korean sellers reach global consumers. Alibaba Group has already facilitated the sale of Korean products to Chinese consumers through Tmall and Taobao, and to Southeast Asia through Lazada. Over the past four years, Korean products worth 34.3 trillion won ($25.5 billion) have been exported via Alibaba’s platforms.

“We serve over 180 countries, which gives us a unique advantage in helping Korean SMEs export their goods to markets such as the United States and Europe,” Zhang added.