Jingdong (JD.com ), China's No. 1 e-commerce company after Amazon, will start its logistics business in Korea. Unlike AliExpress and Temu, which directly sell products, they are starting a "three-way logistics" business that helps domestic retailers store and deliver products.

If Chinese e-commerce companies go beyond simply selling products to Korea and expand to distribution centers, there are concerns that the Korean distribution ecosystem could be completely dominated by China.

According to the distribution industry on the 21st, Jingdong announced last month that it would open distribution centers in Incheon and Icheon, Gyeonggi Province, and is considering securing additional distribution bases. Jingdong recently started to expand its workforce by posting job openings for logistics experts.

Unlike Ali and Temu, which enter online platforms first in Korea and expand delivery networks there, Jingdong plans to focus on "third party logistics business" after securing a large number of distribution centers in Korea. After that, it is expected to purchase Korean products directly and start "selling its own products" through the Jingdong platform.

Temu, which entered Korea earlier, set up a distribution center in Gimpo City in March in the form of leasing 50,000 pyeong of land. AliExpress has also announced its plan to invest about 1.6 trillion won in Korea by 2026, and is considering securing a site for a distribution center.

"With Jingdong's entry into Korea, competition to secure a distribution center in Korea is expected to accelerate among C-commerce," a distribution industry official said. "It will be easier to secure a center as domestic distribution centers have recently entered saturation, with higher vacancy rates."