Leading the Online Market Following Naver... Building a 'Digital Ecosystem'
2.7 Million Paid Customers + Largest Domestic Seller Base + Skilled IT Experts Secured
[Asia Economy Reporter Jo In-kyung] Shinsegae Group's Emart has finalized the acquisition of eBay Korea, which operates Gmarket and Auction.
Emart announced on the 24th that it plans to sign a 'Share Purchase Agreement (SPA)' to acquire 80.01% of eBay Korea's shares from eBay's U.S. headquarters for approximately 3.44 trillion KRW. This marks the emergence of a new owner about six months after eBay officially announced the sale of eBay Korea earlier this year. The remaining 20% stake in eBay Korea will continue to be held by eBay headquarters.
Regarding this acquisition of eBay Korea, Shinsegae stated, "It will be the starting point for a 180-degree transformation of the group's business structure towards 'online and digital'." A group official explained, "In the future retail market, only the strong online players will survive. This acquisition is not simply buying a company but buying time and opportunity."
Earlier, Shinsegae Group Vice Chairman Chung Yong-jin also expressed strong determination to acquire eBay Korea, saying, "The decision criterion is not how much, but how much value can be created."
Business Structure to Shift 180 Degrees to Online and Digital
With the acquisition of eBay Korea, Shinsegae will instantly become a leading player in the fiercely competitive domestic e-commerce market.
Shinsegae's online division, SSG.com, had a transaction volume of about 3.9 trillion KRW last year, with a market share of only 2.4%. After acquiring eBay Korea, the transaction volume will reach 24 trillion KRW, and the market share will approach 15%, putting it on par with Naver Shopping (28 trillion KRW, 17.4%) and Coupang (22 trillion KRW, 13.7%).
Shinsegae plans to realize economies of scale and transform completely into an 'ultimate online company' by securing eBay's loyal 2.7 million paid customers and one of the largest seller bases in Korea. For the Emart division alone, the online proportion will reach about 50%, marking a major shift in the future business core towards online and digital.
Starting with this, Shinsegae will accelerate the construction of a 'digital ecosystem' for the future. In addition to existing offline retail such as Emart and Shinsegae Department Store, the group will have a comprehensive online platform including the recently acquired SSG Landers baseball team, eBay Korea, and SSG.com, completing a full on-off '360 ecosystem' that can meet all customers anytime, anywhere.
Over 1 Trillion KRW Investment in Online Fulfillment Centers
Shinsegae Group plans to maximize synergy by combining its accumulated offline retail operation know-how and logistics capabilities with eBay Korea. It will firmly establish a comprehensive platform covering everything from grocery shopping to lifestyle categories and secure price competitiveness through integrated purchasing.
In particular, based on the know-how of SSG.com, which owns online fulfillment centers, the group will focus on investing more than 1 trillion KRW in online fulfillment centers over the next four years and enhance logistics competitiveness by utilizing existing offline bases as online logistics forward bases.
Through same-day delivery and other services, it aims to improve seller competitiveness and maximize investment efficiency by increasing center utilization rates based on eBay Korea's large volume. Moreover, in the current fierce competition for securing domestic IT professionals, acquiring eBay Korea's skilled IT experts will accelerate the scale and growth speed of the online business, according to Emart.
An Emart official stated, "The acquisition of eBay Korea will be an opportunity to reorganize not just online but the entire retail landscape."
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