U.S. based ecommerce companies should review the Personal Information Protection Act (PIPA) and ministerial data privacy/spam regulations, which may restrict ecommerce for firms managing user-data on international servers.
According to a survey by Korea Internet and Security Agency, PC and mobile shoppers preferred payment method is credit card accounting for 72.4 percent of PC and 68.1 percent of mobile shoppers. Next followed debit card and account transfer (both Internet and mobile banking service).
Next followed debit card and account transfer (both Internet and mobile banking service).
Cash on delivery (4%), eWallet (3%), PrePay (2%)
Mobile retail ecommerce sales are also particularly strong in South Korea. In 2015, industry data suggests that 37.5 percent of online retail sales were generated via mobile device. Mobile shopping transaction volume amounted to 34.7 trillion Korean won in 2016, accounting for 53.46 percent of total online shopping value during that year. As of the fourth quarter of 2016, 55 of the population in South Korea have made a purchase via mobile phone.
More than 50% of B2C eCommerce sales in this country stem from mobile. Driven by convenience of mobile shopping, consumers in South Korea increasingly turn to mobile devices for making purchases online. As of early 2017, smartphone stands as the favorite device of South Korean online shoppers, with the share of Internet users buying on mobile exceeding the share of those using computers to shop.
Payment Gateway category like Samsung Pay and Naver Pay is attracting more users. On average 860,000 cases per day were paid by smart pay services in 2016 and the sales amount to $ 22.3 million.
While cards remain by far the most dominant method of payment (83% market share), alternative payment methods are expected to loosen the grip of card-based transactions, with online payments growing from 17-27% from now to 2019.