YouTube is set to make a big move in the world of online shopping by launching its very first official shopping channel in South Korea. According to reports from Yonhap news agency, the channel will specialize in live commerce and is scheduled to go live on June 30. South Korea, already a thriving market for live-streaming commerce, presents an ideal opportunity for YouTube to test its new venture.

The shopping channel, which will operate in Korean, plans to kick off as a 90-day project. Initially, it will provide a platform for companies to engage in live commerce, with around 30 brands expected to livestream shopping content. Sources familiar with the matter have shared this information with Yonhap and other Korean media outlets.

This marks a significant milestone for YouTube, as it represents their first official shopping channel in any country. YouTube Korea has yet to comment on the news.

The decision to enter the shopping space comes as YouTube faces challenges in its advertising revenue, partly due to reduced spending by advertisers and increased competition from platforms like TikTok. In February, Philipp Schindler, Google’s Chief Business Officer, expressed the company’s interest in making it easier for people to shop from their favorite creators, brands, and content.

Following the announcement, shares in Naver, the tech giant leading South Korea’s live-streaming commerce market, dropped by 4%. Likewise, Lotte Shopping, a major retailer, experienced a 3.3% decrease, while the wider market saw a 0.5% decline.

Projections indicate that South Korea’s live commerce market will surge to 10 trillion won ($7.7 billion) this year from 2.8 trillion won in 2021. Currently, Naver holds approximately 60% of the market share, according to Kyobo Securities.

(Note: The conversion rate at the time of writing is $1 = 1,291.1600 won)

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