SEOUL – PDD Holdings, the Chinese e-commerce giant, announced on Tuesday the establishment of a new business entity in South Korea, marking a significant step for its online marketplace Temu in penetrating the competitive South Korean market, where it faces stiff competition from local heavyweight Coupang Corp.
According to Yonhap News Agency, PDD Holdings has launched Whaleco Korea LLC in Jongno with an initial capital of 100 million won ($74,000). This strategic move is aimed at bolstering Temu's presence in the region and facilitating collaboration with local service providers to enhance its service offerings.
The establishment of Whaleco Korea LLC is also poised to enhance Temu's capability in addressing consumer complaints more effectively within South Korea. This focus on customer satisfaction comes at a time when Chinese e-commerce entities like Alibaba's AliExpress have faced growing scrutiny over issues such as product quality and delivery reliability in the Korean market.
PDD Holdings' expansion into South Korea through the Temu platform, which began in July following its foray into the United States, Europe, and other Asian markets, signifies the company's ambition to establish a robust global footprint in the e-commerce sector.