YouTube is set to launch its first official shopping channel in South Korea on 30th June, according to reports from Yonhap news agency. This move comes as YouTube aims to tap into the growing trend of live-streaming commerce in the country, which is currently dominated by tech giant Naver. South Korea’s live commerce market is expected to reach 10 trillion won (US $ 7.7 billion) this year, with Naver holding approximately 60 per cent of the market share.
The new shopping channel on YouTube will be conducted in the Korean language and will initially operate as a 90-day project. It will serve as a live-commerce platform for various companies, offering livestream shopping content from approximately 30 brands. This marks YouTube’s first official shopping channel in any country. While specific details about the shopping features have not been provided, a YouTube spokesperson hinted at potential experiments with different YouTube Shopping features.
YouTube’s move into live commerce comes as the platform looks to enhance its revenue stream, given challenges such as reduced ad spending from advertisers and increased competition from platforms like TikTok. Google’s Chief Business Officer, Philipp Schindler, previously mentioned the potential of making it easier for users to shop directly from their favorite creators, brands, and content.
The announcement of YouTube’s shopping channel in South Korea had an impact on the market. Shares in Naver fell by 4 per cent and retailer Lotte Shopping dropped by 3.3 per cent, while the broader market experienced a 0.5 per cent decline.
With its launch in South Korea, YouTube aims to leverage the country’s thriving live-streaming commerce industry and test its capabilities in becoming a more “shoppable” platform.
