Shinsegae partners with Alibaba to reshape e-commerce market

[Anchor]

Shinsegae Group has decided to establish a joint venture with China's Alibaba.

This means that Gmarket and AliExpress Korea will be under one roof.

Reporter Jo Eun-ae has analyzed the changes in the domestic e-commerce market.

[Report]

Shinsegae Group has decided to create a domestic joint venture with China's Alibaba Group.

The structure involves a company formed by both groups investing equally, with Gmarket and AliExpress Korea being incorporated as subsidiaries.

[Shinsegae Group Official: "To strengthen competitiveness in the domestic e-commerce market... This is expected to provide a foothold for domestic sellers to enter the global market while also significantly contributing to the development of K-products and expanding their market base."]

This partnership was formed as a result of the two companies' concerns about the Korean e-commerce market.

Shinsegae Group can now aim for new growth for Gmarket, which has struggled to regain competitiveness, while AliExpress secures verified sellers in Korea and establishes a stronger foundation for entering the Korean market.

Shinsegae Group acquired Gmarket for over 3.4 trillion won in 2021, but has faced poor performance, recording operating losses for two consecutive years.

Meanwhile, the domestic e-commerce market has seen a strengthening of the duopoly of Coupang and Naver.

[Lee Eun-hee/Professor of Consumer Studies at Inha University: "A competitive market is desirable from the consumer's perspective as it leads to better quality and lower-priced goods being supplied."]

However, there are concerns that a Chinese retailer with massive financial power could gain excessive influence in the domestic market, and ongoing worries about the safety standards of Chinese products on AliExpress have been raised.

The two groups plan to start full-scale product operations in the first half of next year.

This is KBS News, Jo Eun-ae.