Shinsegae Group has announced a strategic partnership with China’s Alibaba Group. (Image courtesy of Yonhap)
SEOUL, Sept. 18 (Korea Bizwire) — South Korean retail giant Shinsegae Group said Thursday its joint venture with Alibaba International has secured regulatory approval, clearing the way for a launch next month that could reshape the country’s online retail landscape.
The 50:50 venture, greenlit by the Korea Fair Trade Commission, was approved after the companies adopted self-correction measures to strengthen customer data protection and information management, Shinsegae said.
Framed as a “strategic alliance,” the partnership brings together Shinsegae’s Gmarket platform, home to 600,000 sellers, with Alibaba’s global reach. The company said the deal would serve as a gateway for Korean merchants to tap overseas demand, with plans to introduce up to 20 million products abroad this year.
Initial markets include Singapore, Vietnam, Thailand, Malaysia and the Philippines, where interest in K-pop and Korean consumer goods is surging.
Over the longer term, the joint venture envisions expansion to as many as 200 markets across Europe, South Asia, Latin America and the United States, leveraging Alibaba’s existing global sales networks.
Under the agreement, Gmarket and AliExpress Korea will be folded into the new entity as affiliates, though both platforms will continue to operate independently. Shinsegae said this structure is designed to create synergies while retaining each brand’s identity.
The move comes as Shinsegae steps up its challenge to domestic e-commerce leaders Coupang and Naver, which dominate South Korea’s online retail scene. For Shinsegae, the tie-up offers a path to revive Gmarket, which it acquired for 3.44 trillion won ($2.35 billion) in 2021. Despite its scale, the platform has posted operating losses for three straight years through 2024, weighed down by fierce competition.
“The strategic alliance with Alibaba will improve efficiency and strengthen our competitiveness at home while opening the door to international growth,” Shinsegae said in a statement.
Analysts say the partnership underscores how traditional Korean retailers are seeking global alliances to stay competitive in an e-commerce market increasingly defined by scale, cross-border logistics and platform ecosystems.
Ashley Song (ashley@koreabizwire.com)
