Kakao Pay becomes first in S. Korea to service China’s AliExpress

Kakao Pay became the first in South Korea to service Hong Kong-based online retail platform AliExpress, which is owned by China’s Alibaba Group.

The Chinese retailer first became available to Korean users in July and went full scale on Aug. 31.

AliExpress is a Hong Kong-based retail website owned by China’s Alibaba Group that is now China’s most popular e-commerce platform of foreign goods.

South Korea is one of AliExpress’s major markets, where Chinese-made products are cheaper price than their Korean counterparts.

While delivery may take longer, there are little to no delivery charges.

In March, AliExpress added a logistics route exclusive to Korea to speed up the delivery process.

Kakao Pay has been aggressively expanding its network of overseas e-commerce platforms.

Last month, it added iHerb, a US online retailer of personal care products, nutritional supplements, and health foods.

Kakao Pay has been strategically aligned with Alibaba since its inception, receiving an investment of $200 million from Alipay Singapore Holding when it was launched in 2017.

In June, it received a fresh infusion of about $97 million from the company.

Alipay holds a 43.9 percent stake in Kakao Pay.