April 27, 2024

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[THE INVESTOR] Shinsegae Group Vice Chairman Chung Yong-jin on March 28 said Shinsegae is likely to push for an IPO of its new e-commerce unit to raise 2 trillion won (US$1.87 billion).

He said talks are underway with investors to sign a share purchase agreement in April.

Early this year, Shinsegae signed a memorandum of understanding with a consortium led by BRV Capital Management and Affinity Equity Partners to launch a new e-commerce unit within the year. The entity is likely to be born of a joint venture between Shinsegae Department Store and E-mart. 

Chung Yong-jin

“Negotiations always take time, but talks are going smoothly,” Chung told reporters. Asked about the target funding, he said it seems feasible.

Chung said most of the funding will be used for building logistics networks. Shinsegae wants to set up a new logistics center in Hanam, Gyeonggi Province, where the group recently purchased a 21,422 square-meter site for almost 1 trillion won.

Shinsegae believes it would turn up as an “unprecedented high-tech logistics” outpacing the likes of Amazon to become a new landmark.

Meanwhile, Chung ruled out the possibility of Shinsegae acquiring other e-commerce companies, such as Coupang or Market Kurly.

By Lee Ji-yoon (jylee@heraldcorp.com)