Social commerce is a kind of electronic commerce that prompts transactions of goods and services by using social network services. Social commerce started to spread as Groupon began to provide joint purchase services by using social media. In Korea, it began in earnest as Groupon advanced into the Korean market and Ticket Monster started to provide social shopping services in 2010. The market has then grown 360% on annual average recording sales of 5,500 billion won in 2014. Currently the social commerce market in Korea is led by three social commerce companies including Coupang, Tmon and WeMakePrice. The competition between the three companies has been getting fiercer to strengthen their grip on the market as the market scale is growing. The three social commerce companies are working on advancement into overseas markets while enhancing quality of services by strengthening shipping services and diversifying their sales items. Despite of the rapid growth of the three social commerce companies, operating profits recorded a deficit in the last year. It was analyzed that major sources of operating income deficit are excessive marketing costs, investment in logistics and organizational structures that require high costs. Despite the operating income deficit, social commerce companies are likely to attract a large amount of domestic and foreign investments, and therefore it is expected that social commerce companies would grow continuously. However as the influence of social commerce companies in the online retail market is expanding and competitions among companies intensifies, conflicts are occurring due to unfair transaction with suppliers. Moreover, as the number of social commerce users is on the increase, consumer damages are also increasing. Therefore, it is required to make sustained monitoring efforts by the government concerning the social commerce market so that proper transaction practices are established, thus securing soundness of the retail industries while reducing consumer damage.