Inquivix Insights No. 23 – March Issue 2022

The 23rd Issue of Inquivix Insights is here! In this issue, we take a look at market trends that are developing in South Korea and how companies are responding. We also explore the updates from the AI and electronic payment platforms. As always, we hope you find this information helpful and informative.

The Payment Gateway Industry Opposes the Sharp Increase in eCommerce Card Fees

South Korea’s Electronic Payment and Settlement Association has opposed credit card companies’ increases in franchise costs. In January, seven credit card firms informed the payment gateway (PG) companies that they would raise franchise fees from 0.05% to 0.1% on March 1. The association, which includes eight payment gateway companies, issued a formal statement to the seven credit card companies, informing them that they could not accept the fee hike proposal. According to a representative from the PG Association, this rise in fees will cause the commission rate of the PG firm to rise. This will eventually result in a strain on e-commerce and shopping malls that use PG companies for card payments, which will subsequently raise the cost burden on buyers.

Naver’s Ambitious “No Code AI” Opens Testing

It seems as if Naver is preparing to launch an external trial of No Code Artificial Intelligence. “No code” implies that anyone may access it, regardless of their programming skills. The Clova Studio, which Naver is developing, is a no-code AI tool. Clova Studio is a platform that aids non-technical users in exploring the usefulness of AI and integrating it into real-world applications. ‘Explorer’ is where you may explore and interact with AI services generated by other users, while ‘Playground’ allows you to freely tinker with AI. Users’ comments and questions, as well as answers to those queries, may be seen in the ‘Forum’ section where they can discuss their ideas and concerns.

The Retail Industry Continues Sales Growth with the Golf Season

Because of the growing popularity of golf, retailers are scouring for new growth engines in the golf market. This is why golf marketing campaigns are growing more competitive, following last year and this year’s increase in luxury goods sales. Regardless of department stores, hypermarkets, home shopping, malls, or retail shops, the retail industry is eager to pique the interest of golfers and attract them.

Instagram Introduces a Live Broadcast Host Function

Instagram now allows you to suggest hosts or moderators for live streaming events. According to sources, the hosts can moderate controversial comments or block viewers. The owner of the broadcasting Instagram account can nominate another user as a host during the live broadcast.

Market Kurly has more than 10 million members.

As of December 2021, the cumulative number of members for the food delivery and logistics platform Market Kurly has reached 10 million. To celebrate this, Kurly will start a campaign that will give out KRW 1 million weekly bonuses for seven weeks until April 30. It will also run video commercials to commemorate the platform reaching 10 million members.

Cafe24 Offers New Site Designs to Reflect the Recent Trends

Cafe 24, a global eCommerce platform based in South Korea, announced that it will significantly increase the number of site designs and provide more design assistance. As of this month, Cafe 24’s site designs have expanded to approximately 270,000. The number of professional designers who offer their offers through the site has also risen to 30,000.

Interpark Opens Its “Seller Talk” Service

To increase the competitiveness of store sellers, Interpark will launch a “Seller Talk” service. Sellers may respond to consumer inquiries immediately and run marketing campaigns by push notifications, individual coupon offers, and special exhibitions. According to Interpark, the Seller Talk service was inspired by the chatbot “Talk Butler,” which debuted in 2016.

Conclusion

The South Korean market is furthering its digital transformation with AI, new site designs, new services, and more. Things are heating up in the South Korean eCommerce industry, with credit card companies looking to increase franchise fees and payment gateway companies pushing back. The eCommerce industry is working on offering better services to the sellers and consumers with services like Seller Talk, bonuses, and new site designs. Naver has also opened testing for its No Code AI platform, which will likely provide even more competition in the coming months.