Weeks after Alibaba consolidated all of its domestic- and international-ecommerce business units to defend against the likes of Temu, it is partnering with Shinsegae Group in Korea, which owns E-Mart’s ecommerce platform Gmarket, formerly owned by eBay.
The two companies will combine the assets of AliExpress Korea and Gmarket to form a 50-50 joint venture, according to media reports, but the two platforms will continue to operate independently. Bloomberg (via Yahoo Finance) said the joint venture deal would help the companies face off against local South Korean rivals including Naver Corp. and Coupang Inc.
Shinsegae Group had acquired a majority controlling interest in eBay’s South Korean business in 2021 for about $3 billion, part of eBay’s divestitures following pressure from activist investors that began in 2019.
The Chosun Daily reported today that the new joint-venture entity would launch in 2025 and would absorb Gmarket as a subsidiary alongside AliExpress Korea. The news site wrote the following:
“Founded in 2000, Gmarket was once South Korea’s top e-commerce platform but has struggled to keep pace with competitors such as Coupang, often referred to as the “Amazon of Korea.” Coupang’s aggressive mobile-first strategy and rapid delivery services have reshaped the country’s online retail landscape.”
Alibaba’s willingness to do a joint venture in South Korea could portend a trend in which older, established firms seek partnerships to defend against high-growth, mobile-first ecommerce platforms.
