Shinsegae, Naver in S Korea build joint retail front vs rivals

23 Mar '21

2 min read

Pic: Shutterstock

The recent strategic share swap deal between South Korea’s retail company Shinsegae and portal operator Naver Corp. to build up economies of scale in the country’s e-commerce market has received a positive response. Shares of both the companies rose. Following this, Naver will own a 2.96 per cent stake in E-Mart and 6.85 per cent in Shinsegae International, while E-Mart and Shinsegae will hold combined 0.4 per cent.

The parties swapped their shares in block trade on March 17. The Shinsegae Group and Naver Corp. announced exchange of shares worth 250 billion won ($221 million) for a retail business alliance against fast-growing e-commerce rivals amid the rapid shift toward e-commerce in the retail sphere, according to South Korean media reports.

Under the deal, the portal giant commanding the biggest share in the Korean online shopping market in terms of gross merchandise value will exchange its 150 billion won worth treasury shares, or 389,106 shares, with 824,175 treasury shares of Shinsegae`s discount store chain operator E-Mart Inc. and 100 billion won worth of its treasury shares, or 259,404 shares, with 488,998 common shares of Shinsegae’s fashion retail unit Shinsegae International Inc.

The alliance aims to build a strong collaboration system across all areas of retail business ranging from commerce to logistics and new business projects by combining Shinsegae’s on and offline commerce capabilities with Naver`s platform and artificial intelligence technology for fast and better customer services.

Fibre2Fashion News Desk (DS)

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