South Korea’s decade-long love affair with overseas online shopping is losing momentum as a surging U.S. dollar erodes the savings that once made direct purchases from foreign retailers irresistible.
The pressure is spreading beyond consumers. Package-forwarding companies that built businesses around helping Koreans shop from U.S. websites are facing mounting operational and financial strains, raising concerns about the sector’s future.
Among the most closely watched cases is Twofasts, a U.S.-based forwarding service widely used by South Korean shoppers. Since March, customers have reported delayed shipments, missing packages and long waits for customer-service responses. More than 700 users have joined online discussion groups to share complaints and coordinate potential legal action.
Founded in 2013, Twofasts gained popularity by offering some of the lowest forwarding fees in the industry. The company became a familiar name among bargain hunters seeking access to American retailers during promotional events such as Black Friday.
A survey conducted by affected customers found that reports of undelivered orders accelerated sharply beginning in April. Several respondents said they suffered losses exceeding $7000, while others reported filing complaints with police.
One customer said he purchased athletic shoes worth about $170 and paid all required shipping fees, yet the order has remained undelivered for weeks.
The company has become increasingly difficult to reach. Publicly listed customer-service phone numbers were reportedly inactive, and customers said access to official support channels has been limited.
The disruptions coincided with a sharp deterioration in currency conditions. On June 6, local time in South Korea, the won weakened to as much as 1561.5 per U.S. dollar during overnight trading, its highest intraday level since the aftermath of the global financial crisis in March 2009.
For years, favorable exchange rates helped fuel South Korea’s direct-purchasing culture. During the 2010s, consumers routinely imported electronics, appliances, clothing and health products from the United States at prices that often undercut domestic alternatives by a wide margin.
As the dollar strengthened and shipping expenses climbed, many imported products lost their pricing advantage. Consumers who once relied on direct purchases for routine items, including over-the-counter medications, now say domestic alternatives often offer comparable value.
The slowdown is becoming visible in the data. Government figures show overseas online purchases totaled approximately $1.4 billion during the first quarter, with growth barely exceeding year-earlier levels.
Separate central-bank data released on June 5 showed cross-border e-commerce spending fell 13.1% from the previous quarter during the January-through-March period.
The challenges extend beyond exchange rates.
Chinese e-commerce platforms such as AliExpress, Temu and Shein have rapidly expanded their footprint in South Korea, reshaping a market once dominated by purchases from U.S. and European retailers.
Aggressive pricing and low-cost shipping have helped Chinese sellers capture a majority share of overseas online spending by South Korean consumers.
Industry executives say the new environment is especially difficult for smaller forwarding companies operating on thin margins. Rising transportation costs, currency volatility and slowing demand have combined to create conditions many firms struggle to withstand.
Consumer advocates warn that some operators may lack sufficient insurance coverage or financial reserves to compensate customers in the event of business failures.
What was once one of Asia’s most vibrant cross-border shopping markets is increasingly confronting a new reality: when the currency advantage disappears, so does much of the appeal.
