Is 'China's Coupang' coming to Korea? JD.com opens hubs in Incheon, Icheon

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Is 'China's Coupang' coming to Korea? JD.com opens hubs in Incheon, Icheon

Published: 24 Apr. 2025, 22:23 Updated: 25 Apr. 2025, 18:45

Audio report: written by reporters, read by AI

A Jingdong Logistics warehouse in Icheon, Gyeonggi [JINGDONG LOGISTICS]

JD.com, one of China’s largest e-commerce companies, appears to be entering the Korean market. With AliExpress and Temu already expanding their presence in Korea through aggressive pricing strategies, the arrival of JD.com raises concerns for domestic e-commerce companies.

Founded in 1998, JD.com ranks alongside Alibaba’s AliExpress and Pinduoduo’s Temu as one of the “big three” e-commerce players in China. Unlike AliExpress and Temu, which operate as open marketplaces, JD.com primarily follows a direct purchasing model by buying and selling goods itself — earning it the nickname “China’s Coupang.”

According to the retail industry, Jingdong Logistics, the logistics subsidiary of JD.com, recently began operations at newly established logistics centers in Incheon and Icheon, Gyeonggi.

These centers are said to handle logistics services on behalf of global sellers, including those based in Korea. The services include fulfillment operations, where the company takes care of inventory, order processing and delivery. The company is reportedly managing logistics for a U.S. consumer goods brand’s operations in Korea as well as outbound logistics for a Korean beauty company expanding overseas.

Jingdong Logistics is also running a cross-border sales logistics service for Korean products shipped to Chinese consumers through its global e-commerce platform, JD Worldwide.

Currently, Jingdong Logistics is focusing its logistics services on Seoul and parts of Gyeonggi, with plans to expand coverage in the future.

JD.com logo [SCREEN CAPTURE]

While smaller logistics firms such as those linked to AliExpress and Temu have previously handled logistics tasks in Korea, this is the first time an e-commerce company has directly built and operated its own logistics centers in the country.

Industry insiders view these centers as a strategic foothold for JD.com’s potential full-scale entry into the Korean e-commerce market. “It is interpreted as a sign that JD.com intends to launch e-commerce operations in Korea, beginning with logistics,” one official said.

AliExpress and Temu have also been strengthening their logistics infrastructure in Korea as part of their ultralow-price strategy. Temu recently secured a large-scale logistics center in Gimpo, Gyeonggi, which is operated by Lotte Global Logistics. AliExpress is reportedly searching for its own site in the greater Seoul area.

Chinese e-commerce companies are targeting Korea’s fast-growing online retail market.

According to Statistics Korea, the value of online shopping transactions in the country surpassed 240 trillion won ($167 billion) last year, reaching an all-time high. Amid rising inflation, price-conscious consumers have further boosted the appeal of ultralow-cost offerings from Chinese platforms.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HWANG SOO-YEON [[email protected]]