Korea’s Shinsegae partners with China's Alibaba Group

Korean departmental stores chain Shinsegae has formed a strategic partnership with China’s Alibaba Group, to strengthen its position in South Korea’s e-commerce market.

According to the Reuters report, the company said in a regulatory filing that the joint venture will be formed partly by Shinsegae investing its 100 percent stake in South Korean e-commerce platform Gmarket.

AliExpress Korea and Gmarket will be incorporated into the joint venture, which will be set up in 2025. But the two platforms will continue to be operated independently, Shinsegae said in a separate statement.

Shinsegae aims to utilise Alibaba’s vast international network to extend its reach, enabling Gmarket’s 600,000 sellers to access markets across China, the United States, Europe, and Southeast Asia, among others.

Shinsegae appointed former Alibaba Korea executive Jeong Hyeong-gwon as CEO of Gmarket earlier this year.