Shinsegae Partners with Alibaba to Boost E-Commerce in Korea
Shinsegae Group and Alibaba International are joining forces to create a joint venture (JV) in 2024, aiming to strengthen their e-commerce presence in Korea. The JV will incorporate Gmarket and AliExpress Korea as subsidiaries, with equal investment from both companies.
Shinsegae’s move comes as it seeks to turn around Gmarket’s financial struggles, which have persisted since its acquisition from eBay Korea in 2021. Despite heavy investments, Gmarket has reported significant operating losses over the past three years.
For Alibaba, this partnership offers an opportunity to expand in Korea, especially as U.S.-China trade tensions continue. Industry experts speculate that the alliance could serve as a strategic workaround for Alibaba to access global markets while navigating U.S. sanctions.
While this collaboration brings together two retail giants, public sentiment towards Chinese corporations remains a challenge in Korea. Shinsegae and Alibaba will need to address concerns over consumer trust and data security to make this venture successful.
The partnership marks a significant step in reshaping Korea’s e-commerce landscape, though its impact and synergy remain to be seen.
Information about the schedule of promotions with discounts in 2025 on AliExpress
