[Alpha Biz= Paul Lee] JD.com, often dubbed the “Amazon of China,” is making its official foray into the South Korean market, following in the footsteps of fellow Chinese e-commerce giants AliExpress and Temu. With all three of China’s major online retailers now actively targeting Korea, the influence of Chinese cross-border commerce (C-commerce) is expected to grow significantly.
According to the retail industry on April 24, JD.com’s logistics arm, JD Logistics, has recently launched operations at newly established fulfillment centers in Incheon and Icheon, Gyeonggi Province. These centers are set to handle logistics services not only for Korea but also for JD’s global sellers.
While the logistics service is currently limited to Seoul and parts of Gyeonggi Province, expansion is expected. Although smaller logistics firms have previously managed operations on behalf of C-commerce platforms in Korea, this marks the first time a major Chinese e-commerce player has built and operated its own logistics infrastructure locally.
Founded in 1998, JD.com is considered one of China’s “Big Three” e-commerce companies, alongside Alibaba’s AliExpress and Pinduoduo’s Temu. Unlike its peers, which operate open marketplaces, JD.com primarily uses a direct-purchase model, buying and selling products itself—earning it the nickname “China’s Coupang.”
JD.com’s 2023 revenue reached 1.1588 trillion yuan (approx. KRW 227 trillion), over five times that of Coupang (approx. KRW 41 trillion). JD.com is listed on the Nasdaq, and JD Logistics operates over 100 logistics centers across 19 countries.
Industry insiders view JD’s local logistics centers as a strategic move ahead of a full-scale market entry. “Given the scale and volume JD.com handles, a potential price-driven expansion in Korea could significantly impact the domestic e-commerce landscape,” said a retail industry official.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
