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Temu seeking local hires, distribution deals in preparation to enter Korean market

Published: 10 Feb. 2025, 17:04

CHO YONG-JUN
[email protected]

The logo of Chinese e-commerce platform Temu is seen on a mobile phone displayed in front of its website. [REUTERS/YONHAP]

Temu, an e-commerce platform operated by Chinese online retailer Pinduoduo, has begun hiring Korean employees, following in the footsteps of crosstown rival AliExpress.

The e-commerce platform began serving the Korean market in July 2023 and established Whaleco Korea in February 2024. Whaleco Korea is a subsidiary of PDD Holdings, the parent company of Pinduoduo.

A Temu representative declined to comment on the matter.

Temu began hiring staff in Korea across many categories — human resources, general affairs, public relations, marketing and distribution — starting at the end of last year. The company had already completed the hiring of some staff members, including for its human resources department, the JoongAng Ilbo reported Monday.

The platform is also in the process of finding a local delivery and distribution partner to oversee Temu’s last-mile delivery through public bidding. Currently, Temu’s last-mile delivery relies on multiple custom clearance firms, delivered through CJ Logistics and Hanjin Shipping.

A source familiar with the industry sees the platform’s recent actions as a move to localize its Korean business, or as a preliminary step to directly entering the Korean market.

“Hiring staff members within the country and localizing its distribution network are the two things that a foreign e-commerce platform must do if they wish to do more than just selling products and actually officially enter the market,” a source familiar to the e-commerce industry said.

“Temu’s recent moves seem like they are following in AliExpress’ footsteps.”

AliExpress, similarly, first opened Korean versions of its websites in 2019. It followed up with the establishment of AliExpress Korea and hired Korean employees in 2023.

Temu's decision to expand its Korean business could be linked to a gloomy outlook in other markets like the United States as the Trump administration ratchets up pressure on Chinese e-commerce sites.

“Temu directly entering the Korean market, on top of the establishment of a joint venture between AliExpress Korea and Gmarket, Naver releasing a stand-alone shopping app and Coupang’s investment in its distribution networks — means that the battle to survive in the Korean e-commerce market is extremely intensified,” a source in the e-commerce industry said.

BY HYEON YE-SEUL, CHO YONG-JUN [[email protected]]