The Dream of Combining Distribution and IT... Jeong Yong-jin's SSG.com Embraces SSG Pay

Vice Chairman Jung Prepares Third Office Room

[Asia Economy Reporter Cha Min-young] SSG.com, which consolidates the e-commerce capabilities of Shinsegae Group, is adopting the simple payment system 'SSG Pay (Ssuk Pay)'. Jung Yong-jin, Vice Chairman of Shinsegae Group, who dreamed of becoming the 'Apple of the distribution industry' through the combination of distribution and IT technology, is also showing support by establishing his third office at SSG.com.

On the 1st, SSG.com announced that it will start operating by acquiring the SSG Pay business division from the group affiliate Shinsegae I&C (Shinsegae I&C). The business assets amount to 28.9 billion KRW, and the acquisition price is 60.1 billion KRW. SSG.com’s assets will increase from 2.0504 trillion KRW to 2.0793 trillion KRW based on consolidated figures as of the end of last year.

SSG.com will implement the SSG Pay simple payment system on its online site to enhance customer payment convenience. SSG Pay is expected to create synergy between the two businesses by absorbing the existing SSG.com customer base and strengthening payment accessibility.

It also becomes advantageous in terms of big data utilization. By combining SSG.com’s purchase data with Ssuk Pay’s payment data, it will be possible to execute customer-tailored marketing strategies. Additionally, the prepaid mileage S Money, which was only usable on SSG.com, has been unified into integrated SSG Money, making it usable anywhere within the Shinsegae Group.

Inside SSG.com’s new nest in Centropolis, Jongno-gu, Seoul, an office for Vice Chairman Jung Yong-jin is also expected to be established. This will be his third office, following his existing offices at Shinsegae in Gangnam and Emart in Seongsu-dong. This is interpreted as an intention to devote greater attention to the online business, which he is particularly attached to.

SSG.com has been growing based on the automated facilities 'Neo' phases 1, 2, and 3, even amid the variable of the COVID-19 pandemic. Recently, despite sluggishness in the e-commerce industry with competitors such as Coupang and Market Kurly, SSG.com has been busy as its hygiene management system has been highlighted. SSG.com’s total sales in the first quarter of this year reached 917 billion KRW, a 40% increase compared to the previous year. The deficit also narrowed to 19.7 billion KRW, marking the first time since the second quarter of last year that it fell to the 10 billion KRW range, which is positive. It is currently aiming for 10 trillion KRW in sales in 2023.

Meanwhile, Shinsegae I&C plans to reorganize its business focusing on its core IT business division. It intends to concentrate investments and resources on the growth of IT businesses such as retail tech, cloud, and artificial intelligence (AI).

This content was produced with the assistance of AI translation services.