Supporting Overseas Expansion of Distribution and Cross-Border E-Commerce Platforms...Up to 4.4 Billion Won per Company

MOTIE and KOTRA to Support Korean Platforms
Expanding a Virtuous Cycle of Overseas Growth for Platforms and Consumer Goods
Eight Distribution Platforms and Five Cross-Border E-Commerce Malls Selected

The Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA) are launching a support program to help distribution companies expand overseas.

According to KOTRA on February 22, K-consumer goods are entering a period of rapid growth, with K-content attracting attention in the global market and exports of K-consumer goods reaching a record high of 46.4 billion dollars last year. In response, the government announced the joint government-wide "Plan to Expand Exports of K-Consumer Goods" in December last year, set a goal of achieving 70 billion dollars in exports of K-consumer goods by 2030, and presented a wide range of policy measures.

This new Overseas Expansion Support Program for Distribution Companies has been prepared to support the globalization of distribution platforms that are currently focused on the domestic market. It focuses not only on overseas expansion, but also on building systems geared toward overseas consumers so that domestic distribution networks and cross-border e-commerce platforms can grow into global, specialized distribution platforms like Amazon. KOTRA explained that, through this, it expects to create an opportunity for consumer-goods companies and the platforms on which they are listed to grow together, and to spread a virtuous cycle of overseas expansion in consumer goods, distribution services, and cultural industries.

2026 Poster for the Overseas Expansion Support Program for Retail Companies. Korea Trade-Investment Promotion Agency (KOTRA).

At present, most online exports of K-consumer goods companies depend on global platforms such as Amazon and so-called C-commerce platforms (Aliexpress, Temu, Shein). These overseas platforms tend to be somewhat disadvantageous for Korean companies in terms of listing fees, price negotiation power, and access to customer data, yet companies have no other choice but to rely on them to enter global markets.

In Korea, some leading distribution companies are pursuing overseas expansion, but due to massive initial investment costs and a lack of experience, they are still only at the early stage of entering markets such as China and Japan. For a distribution platform to expand abroad, it must first secure an understanding of the local market, as well as establish export logistics systems and build payment systems.

To address this, over the next three years the Ministry and KOTRA will select 13 distribution and cross-border e-commerce platforms each year and provide systematic support for their overseas expansion. Distribution companies will receive 6.3 billion won per company (4.4 billion won excluding the 30% self-funding portion), and cross-border e-commerce platforms will receive 1.13 billion won per company (800 million won excluding the 30% self-funding portion). Through overseas trade centers, the program will offer comprehensive support in overseas marketing, logistics, certification, promotion (advertising), and consulting, and will also provide information and advisory services on import customs clearance, tariff systems, and market conditions in target regions.

To globalize cross-border e-commerce malls, the program will also support platform development costs, including overseas payment and logistics functions. In particular, cross-border e-commerce platforms, which allow overseas consumers to purchase Korean products from domestic and overseas online malls, are drawing attention as a new sales channel for exports of K-consumer goods. Cross-border e-commerce enables companies that wish to export to do so quickly and conveniently, since overseas consumers can purchase directly online without the companies having to find buyers. In fact, as of 2024, the size of cross-border e-commerce purchases of Korean products reached 2.9 billion dollars, growing 2.6 times in just four years. To further activate cross-border e-commerce, KOTRA plans to support the launch of dedicated global malls and expand marketing and logistics support.

KOTRA President Kang Kyungsung said, "As the popularity of K-consumer goods is rapidly rising in overseas markets, we need to enhance the export capabilities of 'K-distribution platforms' and target entire markets as a whole," adding, "We will provide systematic support so that overseas expansion of distribution platforms can increase exports of both distribution services and consumer goods at the same time."

Applications to participate in the Overseas Expansion Support Program for Distribution Companies can be submitted on the KOTRA website from February 6 to 25.