China's e-commerce giant JD.com, also known as Jingdong, often dubbed "China's Amazon," is set to expand its reach into the South Korean market.
According to sources in the domestic logistics and distribution industry on Thursday, JD Logistics, a logistics firm under the largest Chinese e-commerce platform, recently began operating logistics centers in South Korea's Incheon and Icheon, just outside of Seoul.
It is the first time that a Chinese firm has set up its own logistics centers in South Korea, which are known to offer third-party logistics and fulfillment services for global sellers, including those in South Korea.
The Chinese company also runs logistics services for reverse trading goods, such as delivering South Korean products to Chinese consumers through JD.com's global platform affiliate, JD Worldwide.
JD.com's speculated venture into the South Korean e-commerce market will likely spark competition against local platform giants, including Coupang and Naver.