Overseas Direct Purchase Controversy Due to Safety Issues... 'This' Must Be Checked Before Buying [Heotdari Economy]

Safety Concerns Surrounding Direct Purchase Products
Cadmium and Lead Detected in Low-Cost Accessories
Be Cautious with Cosmetics and Health Supplements Bought Directly

Editor's NoteMany people thought they were engaging in smart economic activities to get something better, but it often turned out to be a misstep. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, it is ultimately the consumers who suffer. We aim to examine economic activities where people have made mistakes by misjudging everyday situations and ended up on the wrong track.

#. Office worker Lee Minjeong (29) suffered a loss after purchasing nutritional supplements through overseas direct purchase (overseas direct buying). The products were found to contain ingredients prohibited from import during customs clearance and were discarded. Not only did she fail to get a refund for the product, but she also had to pay disposal fees.

Cases of purchasing various industrial products, cosmetics, and nutritional supplements through overseas direct buying are increasing due to lower prices, but as safety issues continue to arise, consumers need to exercise caution.

According to the National Statistical Portal of Statistics Korea on the 21st, the amount spent by domestic consumers on online shopping overseas direct purchases was 5.1152 trillion KRW in 2021, 5.3239 trillion KRW in 2022, and 6.7567 trillion KRW in 2023, increasing every year. By product category, clothing and fashion-related products accounted for the largest share at 3.0905 trillion KRW, followed by food and beverages at 1.5017 trillion KRW, home appliances, electronics, and telecommunications devices at 424.264 billion KRW, daily necessities and automotive products at 419.22 billion KRW, and cosmetics at 322.861 billion KRW. By region, China overwhelmingly leads. The amount of direct purchases through Chinese online shopping was 3.2872 trillion KRW, accounting for half of the total. This is about 1.7 times more than the second-ranked United States (1.8573 trillion KRW).

The photo is not related to any specific expression in the article. Photo by Jinhyung Kang aymsdream@

Direct purchases require caution as they do not follow 'domestic standards'

The advantage of direct buying is price. Since it bypasses intermediate import distribution stages, consumers can purchase products at lower prices. Recently, Chinese e-commerce platforms have rapidly increased their domestic market share by offering 'ultra-low prices.' The representative Chinese platforms AliExpress and Temu had monthly active users (MAU) of approximately 8.87 million and 8.29 million respectively in March, ranking 2nd and 3rd after Coupang (30.86 million).

Domestic online platforms, facing challenges, are countering Chinese companies by strengthening direct purchase services. 11st offers direct purchase services from iHerb and Amazon, while Coupang has expanded its direct purchase service areas from the US, China, and Hong Kong to Japan since last month.

List of Accessories Containing Carcinogens. Photo by Incheon Main Customs

However, as the scope of overseas direct purchase services expands, customer complaints are also increasing. Last year, the total number of international transaction consumer consultations received by the Consumer Counseling Center and the International Trade Consumer Portal was 19,418, a 16.9% increase compared to the previous year (16,608). This is a 37.8% increase compared to 2021 (14,086).

On AliExpress and Temu, issues related to carcinogenic substances have repeatedly arisen, increasing consumer anxiety. On the 8th, the Incheon Regional Customs Office announced that after analyzing the components of 404 ultra-low-priced products such as earrings and rings from AliExpress and Temu, 96 items (24%) contained carcinogenic substances such as cadmium and lead exceeding domestic safety standards. Cadmium and lead are classified by the International Agency for Research on Cancer (IARC) as 'possibly carcinogenic to humans' and can cause diseases of the renal or digestive systems if poisoning occurs.

Last month, a death occurred after consuming red yeast rice health supplements sold by Japan's Kobayashi Pharmaceutical, raising concerns. Although this product was not officially imported into Korea, it was available through overseas direct purchase, prompting the Ministry of Food and Drug Safety (MFDS) to request domestic platforms to refrain from selling this product.

Caution is also necessary with cosmetics due to potential ingredient issues. Each country has different prohibited ingredients and allowable components and concentrations. Products officially imported into Korea undergo inspection by domestic cosmetic responsible sellers to ensure compliance with domestic standards, but overseas direct purchase cosmetics do not undergo such procedures.

The same applies to nutritional supplements and other health functional foods. Direct purchase products may contain ingredients not approved domestically or classified as prescription drugs, which general consumers may find difficult to distinguish. If health functional foods containing ingredients not permitted by the MFDS are imported and detected, the Korea Customs Service may withhold customs clearance or discard the items. When purchasing overseas food products, consumers should check whether the food is hazardous on the Food Safety Korea website's 'Overseas Direct Purchase Food Correctly' section.