A man in his 60s, identified only as Mr. A, used to drive 10 to 15 minutes to a large supermarket once a week. He recently started grocery shopping through an online shopping app for the first time. He had long insisted on selecting fresh ingredients in person, but rising fuel costs and better-than-expected product quality online changed his mind.
Mr. B, a man in his 30s who used to stop by a department store food hall on his way home from work for dinner, has recently been ordering meal kits through online shopping more frequently. As he switched from driving to public transportation, his visits to department stores and supermarkets naturally declined.
The "energy crisis" triggered by the war between the United States and Iran is accelerating the shift toward online channels in Korea's retail market. As high oil prices increase the burden of travel, consumers are turning away from offline stores and toward online shopping.
According to data from WiseApp·Retail on the 6th, new installations of major e-commerce apps — Coupang, Naver Plus Store, AliExpress, Temu, 11st, Gmarket and SSG.com — reached 2.754 million in March, up approximately 75,000 (2.8%) from the previous month. Total monthly active users (excluding SSG.com) also rose 2.3%, from 71.18 million in February to 72.80 million in March.
Actual payment data also shows a more pronounced expansion in online consumption since the Middle East war began in late February. According to Mobile Index, the estimated monthly credit and debit card payments at major e-commerce companies — Coupang, 11st, Gmarket, SSG.com and Kurly — jumped 14.5% in a single month, from 4.9436 trillion won ($3.6 billion) in February to 5.6606 trillion won ($4.1 billion) in March. Estimated per-capita credit and debit card spending also rose 7.8%, from 770,000 won in February to 830,000 won in March.
Online retail channels have been steadily expanding their share of Korea's overall retail market since the COVID-19 pandemic. According to the Ministry of Trade, Industry and Energy, the online channel's share of retail sales by format grew steadily from 52.1% in 2021 to 59% in 2025 over the past five years.
With oil prices rising due to the recent Middle East war and the government implementing energy conservation measures, the online channel's share is expected to accelerate further. As travel costs rise and car usage becomes more difficult, offline consumption is likely to contract while demand for app-based ordering and pickup grows.
In particular, as forecasts suggest the Middle East war will be prolonged, some observers predict online retail's share could break the 60% threshold for the first time this year. U.S. President Donald Trump warned Iran on the 4th that "48 hours remain until the gates of hell open," with the Middle East situation escalating into a tense standoff. An industry official said, "The longer the war drags on, the more pronounced consumers' tendency to shop online will become," adding, "The shift to online could accelerate, particularly for repeat-purchase items."
Against this backdrop, calls are growing to swiftly amend the Distribution Industry Development Act — which has been deadlocked due to opposition from small business owners — to ease regulations on offline retail channels. An excessive shift of consumer spending toward online channels could reduce employment at offline stores and weaken social and economic vitality. As of last year, total employment at Emart, Lotte Mart and Homeplus fell by approximately 3,300 from the previous year to around 58,000.
Lee Jong-woo, a professor of distribution and marketing at Namseoul University, said, "The fallout from the Middle East war is driving up oil prices and increasing various burdens including travel costs." He added, "This inevitably leads to a contraction in offline consumption and a rise in online shopping's share." He warned, "If the tilt toward online shopping channels becomes excessive, job losses in offline channels will emerge first, commercial districts centered around supermarkets will decline, and overall social and economic vitality could deteriorate."