Alibaba Boosts Korea B2B Trade With Escrow Payment Model

Alibaba is strengthening its position in cross-border B2B e-commerce by launching an escrow payment service tailored for Korean sellers.

This initiative supports trust-building between international buyers and Korean exporters, helping overcome common barriers in global transactions. It also aligns with research that shows how Alibaba’s early success in China was built on establishing market, relational, and social legitimacy. The move comes as B2B e-commerce rapidly evolves, with 80 percent of supplier interactions expected to be online by 2025.

Key Highlights

• Alibaba introduces escrow payments for Korean sellers to boost global trust
• Korean product exposure on Alibaba platform rose 50 percent year-over-year
• Investment in Busan office supports localized expansion and seller engagement

Escrow functionality—by holding payments until product receipt is confirmed—addresses persistent trust issues in international trade, encouraging more SMEs in Korea to engage globally.

This localized strategy builds on Alibaba’s history of market-specific services, such as its 2016 partnership with SK Holdings C&C to launch Korean-language cloud offerings. The company’s Korea Pavilion and physical office in Busan are further testaments to its localization model, contrasting with more generic global rollouts by competitors.

Also Read: Alibaba Expands Cloud Presence in South Korea, Eyes AI Growth

Alibaba has seen a 50 percent YoY increase in Korean product exposure on its platform, underscoring the success of these targeted efforts. Its infrastructure spans 89 availability zones across 29 regions, ensuring robust operational support for growing trade volumes.

By offering escrow payments, verified transaction histories, and direct local seller engagement, Alibaba is evolving from a marketplace to a full-service transaction facilitator, reinforcing its competitive edge in the global B2B landscape.