SEOUL, December 27 (AJP) - South Korean retail giant Shinsegae Group is teaming up with China's Alibaba Group in a strategic move to bolster its position in the country’s fast-evolving e-commerce market.
The two companies announced plans for a 50:50 joint venture, set to launch next year, combining Shinsegae’s Gmarket platform with Alibaba’s South Korean operations, AliExpress Korea.
The partnership, Shinsegae said in a statement, aims to create a synergistic ecosystem by leveraging Alibaba’s global platform and boosting the efficiency of Gmarket, which is 80.01 percent owned by Shinsegae’s discount store chain, E-Mart Inc.
“This strategic alliance with Alibaba will serve as a gateway for domestic sellers to access international markets while significantly expanding the reach of Korean goods,” a Shinsegae official said.
The joint venture is expected to help Shinsegae and Alibaba compete more effectively with South Korean rivals like Coupang, Inc., which dominates the market but faces growing competition. Shinsegae declined to disclose the venture’s valuation, though local media have estimated it at $4 billion.
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