South Korean retail giant Shinsegae is teaming up with Alibaba International to reshape its digital commerce strategy in 2025, as local platform Gmarket loses ground to domestic rivals.
The deal structure involves Shinsegae contributing its full ownership of Gmarket to form the new entity, which will also incorporate AliExpress Korea. Both platforms will maintain separate operations after the merger, according to E-Mart, Shinsegae’s retail subsidiary.
The partnership comes as Gmarket struggles to compete with dominant local players Coupang and Naver in South Korea’s 150.2 trillion won ($114 billion) e-commerce market, the fourth-largest globally. Chinese platforms like AliExpress and PDD Holdings’ Temu have also intensified competition by expanding their presence.
For Alibaba, the venture offers a stronger foothold in South Korea as it faces headwinds in its home market. The Chinese tech giant reported disappointing quarterly revenue in November, reflecting weak consumer spending amid China’s property crisis and rising youth unemployment.
The move highlights increasing consolidation in Asian e-commerce as traditional retailers seek partnerships with tech platforms to defend market share. Neither company disclosed financial terms or ownership structure of the planned venture.
