2 weeks Ago By Korea Bizwire
Coupang is aggressively expanding its fresh food business in 2025. (Image courtesy of Yonhap) SEOUL, April 24, (Korea Bizwire) — South Korea’s retail sector is undergoing a seismic shift as e-commerce giants and traditional retailers alike double down on fresh food—a category once dominated by brick-and-mortar stores—as a key to future growth and survival. Coupang, the country’s leading e-commerce platform, is aggressively expanding its fresh food business in 2025, following a surge in demand that began during the COVID-19 pandemic.
The company has dramatically increased direct-from-farm sourcing through partnerships with local governments in regions such as Geumsan, Namhae, Seongju, and Goryeong. Its signature overnight “Rocket Fresh” delivery service ensures produce harvested in the morning reaches customers by 7 a.m.
the next day, bypassing middlemen to offer lower prices and higher freshness. Sales of fresh food, particularly fruits, have tripled since 2021, according to industry data. In response, NAVER and Kurly are teaming up to challenge Coupang’s dominance.
Under a strategic alliance announced this year, Kurly’s early-morning delivery service will be available on NAVER’s platform by year-end, allowing both companies to enhance logistics and customer reach. SSG.com, a unit of Shinsegae Group, is reinforcing its online grocery category by leveraging the food sourcing capabilities of its affiliate Emart.
It is expanding its premium offerings and broadening its dawn delivery service beyond the Seoul metro area to cities like Busan, Daegu, and Gwangju. The surge in online fresh food sales is underpinned by rapid improvements in quality and changing consumer behavior, especially among smaller households. While overall retail sales in South Korea fell 0.
1% in 2024 due to inflation and high interest rates, online sales of agricultural, livestock, and marine products jumped 17.2%, reaching 12.8 trillion won ($9.
5 billion)—a 3.4-fold increase since 2019. Still, the online penetration rate for food remains relatively low at 26.
2%, compared to 38% for electronics, 44.7% for fashion, and 37.4% for cosmetics—highlighting untapped growth potential in the fresh category.
Offline players are not backing down. Major supermarket chains like Emart, Lotte Mart, and Homeplus are doubling down on their grocery roots, redesigning stores to dedicate up to 90% of space to food and launching online-order services linked directly to farms. Emart has introduced a new “Order to Home” system via its mobile app, and Lotte Mart has launched a dedicated grocery app, “Zeta,” developed with U.
K.-based Ocado. A new automated logistics center in Busan, scheduled for completion in 2026, is expected to bolster Lotte’s delivery competitiveness.
Convenience stores, too, are entering the fray. Seven-Eleven is rolling out 17 fresh items in small portions at lower prices, targeting “편장족” (shoppers who prefer buying groceries at convenience stores). GS25 has expanded its Fresh Concept Store (FCS) model from just three in 2021 to 591 as of last month, with plans to reach 700 by year’s end.
CU is scaling up its grocery-focused outlets and offering ultra-low-price produce to capture value-seeking consumers. Industry insiders believe fresh food will become the defining battleground for South Korea’s retail future. “Fresh food is a non-negotiable domain for both online and offline players,” said one senior retail executive.
“It will be the central front in the fight for survival and market dominance.” Ashley Song ( [email protected] ).
