SEOUL – South Korean retailer Shinsegae plans to set up a joint venture with Alibaba International, Shinsegae affiliate E-Mart said on Thursday.
The joint venture will be formed partly by Shinsegae investing its 100% stake in the South Korean e-commerce platform Gmarket, it said in a regulatory filing.
AliExpress Korea and Gmarket will be incorporated into the joint venture, which will be established in 2025. However, Shinsegae said in a separate statement that the two platforms will continue to operate independently.
In November, Alibaba Group Holding (NYSE: BABA) missed analysts’ estimates for quarterly sales as Chinese consumers cut back on spending. The world’s second-largest economy is struggling amid a property sector crisis and increased youth job insecurity.
Meanwhile, according to Euromonitor data in South Korea’s e-commerce market, which is the world’s fourth-largest, Gmarket has been struggling against local e-commerce giants Coupang (NYSE: CPNG) and Naver while facing increasing challenges from Chinese rivals like AliExpress and Temu.
