SEOUL, March 28 (Korea Bizwire) — Shinsegae Group will build a massive online center for its new affiliate dedicated to the e-commerce business, its vice president said Wednesday, as the retail giant moves to cope with the rapid expansion of the country’s online market.
In January, Shinsegae announced that it has signed an initial agreement with a foreign investment firm and a private equity firm to attract over 1 trillion won (US$936 million) to strengthen its e-commerce business.
As part of the plan, the company said it will hive off the online business divisions of Shinsegae Department Store and its discount store chain operator E-Mart Inc., and launch a separate affiliate for the e-commerce business by this year.
“We will build an online center with cutting-edge technology, which can outperform Amazon, in Hanam,” Chung told reporters during the business group’s job expo in Seoul. Hanam is a city located just southeast of Seoul, where the company’s first all-in-one shopping complex Starfield is located.
“It will be more of the heart of the group’s online business and the core of SSG.COM set to be hived off, rather than just a logistics center,” he said, adding the new building’s height will be equal to that of a 30-story apartment building.