Global content platform TikTok announced on the 8th that it will join hands with the Seoul Economic Promotion Agency (SBA), the Seoul Metropolitan Government's small and medium-sized enterprise support agency, to support Korean companies entering the Southeast Asian market. The two organizations signed a strategic memorandum of understanding (MOU) with TikTok's Southeast Asia division (TikTok SEA) in Kuala Lumpur, Malaysia, and agreed to cooperate to expand global sales channels for Seoul-based small and medium-sized enterprises.
This agreement, which coincides with Seoul City's Southeast Asian tour, is seen as a prime example of TikTok's collaboration with a public institution to support Korean companies' export market diversification. TikTok plans to leverage the ecosystem of its content-based e-commerce platform, TikTok Shop, to expand overseas sales opportunities for Seoul's top SMEs.
TikTok Shop is a platform that combines short-form content and commerce, providing an environment where users naturally engage with content and make purchases. In Southeast Asia, three out of four TikTok users reportedly have made a purchase through TikTok Shop, demonstrating high conversion rates. Another advantage is its ability to precisely connect K-brand products with potential customers through interest-based algorithms.
TikTok has introduced the "Korea-SEA Cross-Border Solution" to lower the barriers to entry for Korean companies. This solution allows businesses to open TikTok shops in five countries—Thailand, Singapore, Vietnam, the Philippines, and Malaysia—with just a Korean business registration certificate, and provides one-stop support for logistics, payment, and settlement procedures.
Kim Hyun-woo, CEO of the Seoul Economic Promotion Agency, said, “Market diversification is essential for the survival of Seoul companies in a rapidly changing trade environment,” and added, “Through our strategic partnership with TikTok, we will support the establishment and growth of the Southeast Asian market.”
TikTok Korea's Shin Sung-pil, Deputy Director of Public Policy, said, "We will fulfill our role as a corporate citizen by helping Korean companies advance into the global market through cooperation with public institutions." He added, "Based on TikTok's strengths in content and commerce and cross-border solutions, we will support more small and medium-sized enterprises to achieve success in the global market."
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