Government-run online shopping malls are expected to take off with an increase in consumer confidence. However, private shopping malls are getting a cold shoulder.

Government-run Internet shopping malls are generating a lot of interest. With an increase in claims against private online shopping malls, people are turning to more reliable online shopping malls. In fact sales at government-run Internet shopping malls are doubling each year.

E-post shopping run by MIC ( http://mall.epost.go.kr) is expected to exceed 35 billion won after recording 10.9 billion won in 2001 and 23 billion won in 2002. e-commerce by MAF has also taken off. The sales volume for agricultural products increased from 50 billion won in 2000 to over 600 billin won in 2002. MAF is running an integrated shopping mall Appis (http://www.appis.net) and Hanaroclub (http://www.hanaroclub.com).

Appis earned 2.6 billion won in 2001, 8.8 billion won in 2002 and is expected to make over 20 billion won this year. Hanaroclub made 70.7 billion won last year and is targeting 120 billion won this year, which is similar to sales of major shopping malls. MMAF decided to open an 'Internet fisheries marketplace.' The Ministry explained that an integrated shopping mall will open around next January. The Ministry is receiving applications to open stores in the Internet shopping malls.

However, private shopping malls are uneasy about government-run online shopping malls. They feel that the shopping malls are too obsessed with profits. and they are suffering due to inferior price competitiveness. One shopping mall official said, "Government-run online shopping malls are deviating from the original goal of promoting regional economies." For example, in the beginning, the online shopping malls were carrying mostly agricultural and fisheries products and now they are carrying clothing, home appliances and general merchandise.