In 2006, the total amount of E-Commerce transactions in Korea was estimated to have reached approximately USD 400 billion, a 9 percent increase from 2005. This figure is projected to grow at an average annual rate of 10 percent over the next five years. In Korea, the B2B, B2G and B2C transactions account for 88.6, 8.2 and 2.3 percent of the E-commerce sector respectively. There are approximately 4,524 B2C cyber shopping malls in Korea with estimated sales of USD 9.0 billion in 2006.

The transaction volume of Korean Electronic Commerce (EC) is forecast to grow rapidly over the next several years. Major factors driving the growth include a nationwide broadband infrastructure with 35 million Internet users from a total population of 48 million, and introduction of Wireless Broadband (WiBro) and 3.5G mobile High Speed Data Packet Access (HSDPA) services through mobile computing and communication devices in 2007. Increased EC transactions will lead to growing demand for E-commerce solutions, a variety of equipment, networking, software, and services, to develop and support E-commerce-related web-sites and transactions. The electronics and metal manufacturing industries that account for nearly 70 percent of total B2B transactions are willing to spend in order to achieve efficient and secure use of EC tools. However, U.S.-based E-Commerce companies need to monitor the Personal Information Protection Act and Ministerial data privacy/SPAM regulations that are being drafted for enactment in 2007. Although the new regulations are likely to reflect concerns voiced by the public and the industry to the government, it may still be restrictive for E-Commerce firms managing user data globally to some extent.