Shinsegae Department Store Partners with Hancom to Create Its Own Metaverse Platform

Business Agreement Signed... Launching Development of Proprietary Metaverse Platform
Developing NFT Products Linking Virtual Items and Offline
Expanding Digital Business with Industry's First Metaverse Courses

[Asia Economy Reporter Yuri Kim] Shinsegae Department Store is set to develop its own metaverse platform.

On the 23rd, Shinsegae announced that it will sign a business agreement with Hancom on the 24th to jointly pursue metaverse business and aim to secure a leading position in the metaverse platform market.

Shinsegae will be responsible for planning content within the upcoming metaverse platform and providing differentiated customer services. Hancom, along with its affiliate and metaverse specialist company Hancom Frontis, will plan and develop an independent metaverse platform. The two companies plan to establish a strategic cooperation system that integrates distribution and digital in the future.

Shinsegae stated, "Based on stable metaverse platform operation capabilities, we will present 'Digital Shinsegae' as an integrated online and offline department store."

Shinsegae and Hancom plan not only to build and operate the metaverse platform but also to develop virtual items used within the platform and offline-linked non-fungible token (NFT) products, as well as conduct joint marketing.

Son Young-sik, CEO of Shinsegae Department Store, said, "Shinsegae, which has introduced various digital content such as producing NFTs for the first time in the industry, is partnering with Hancom to build its own metaverse platform. We will focus more on providing differentiated customer experiences by integrating online and offline content."

Shinsegae continues to showcase differentiated marketing using digital content. The goal is to transform into a future-oriented department store by utilizing various platforms such as mobile applications (apps) and the metaverse.

In February, Shinsegae became the first in the distribution industry to collaborate with a U.S. 3D artist to produce NFTs and held a giveaway event targeting mobile app customers. The NFT event attracted more than twice the number of participants compared to previous events, and new customer inflow increased by more than 10% during the giveaway period. This month, Shinsegae Department Store created its own character "Poovilla" as an NFT, setting a record by selling out 10,000 units in just one second.

They also introduced the industry's first cultural center lectures through the metaverse. Shinsegae Academy prepared about 30 digital courses this summer vacation in collaboration with the metaverse platform ZEP. Shinsegae Department Store's own mobile app has evolved into a lifestyle platform by providing not only product discount information but also personalized shopping information, e-book rentals, seasonal music recommendations, and seasonal food recipes.

Through this business agreement, Shinsegae plans to accelerate the integration of online and offline. By partnering with Hancom to independently develop the first metaverse platform in the department store industry, they aim to target MZ generation (Millennials + Generation Z) customers who are sensitive to new technologies and trends.