April 26, 2024

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[THE INVESTOR] Korean retail giant Shinsegae said on Jan. 26 it has signed an initial agreement with a foreign investment firm and a private equity firm to strengthen its e-commerce business amid a rapid expansion of the country’s online market.

Shinsegae said it will hive off the online business divisions of Shinsegae Department Store and its discount store chain operator E-mart, and establish a separate affiliate dedicated to the group‘s e-commerce business. The new unit is set to be launched within this year.

The retail giant said it has signed a memorandum of understanding with BRV Capital Management, a consumer focused investment firm, and private equity firm Affinity Equity Partners to attract over 1 trillion won (US$938 million) for its new e-commerce unit.

Shinsegae aims to raise the new firm as the business group’s key distribution channel with an annual revenue of 10 trillion won by 2023.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)