Alibabas logistics arm Cainiao Network is carrying out a mid- and long-term logistics program in South Korea, reports China’s state-run Xinhua, cited by valuewalk.com. Alibaba will cooperate with domestic and overseas logistics partners and try to utilise their facilities. Once Cainiao begins its service in South Korea, Chinese consumers will be able to purchase goods directly from South Korean sellers via Tmall, make payments through Alipay and get their goods delivered by Cainiao Network.
Affluent and middle-class Chinese buyers have lost faith in local goods due to a series of safety scandals and poor quality. According to Joongang Daily, South Korea accounted for only 1% of China’s USD 1 trillion cross-border e-commerce, teh source cites.
In August 2014, Alibaba founder Jack Ma met with South Korean President Park Geun-hye, and the two agreed to boost ecommerce cooperation. Many of South Korea’s supermarket chains, online retailers and TV shopping platforms have set up shops on Alibaba’s Tmall. Alipay offers cross-border payment services to more than 400 South Korean enterprises.
In January 2015, South Korean media reported that Alibaba was in talks with the city of Incheon to jointly invest USD 920 million to set-up ‘Alibaba Town’ in Incheon. The town would reportedly be built in the city’s free economic zone. Spread over one million square meters, it would have a logistics center, a hotel, a shopping mall, facilities for cultural events, and restaurants. Alibaba shares rose 1.44% to USD 85.81 on 19 March 2015, with a declining stock of more than 18%.
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