Shinsegae Group and Naver Exchange 250 Billion KRW in Shares... Forming the Strongest Online-Offline Alliance (Update)

20 Million Shinsaegae and 54 Million Naver Users, 7,300 Nationwide Logistics Centers, 450,000 Sellers Secured
Strengthening Ties Through 250 Billion KRW Equity Swap Between Emart·Shinsaegae and Naver
"Shinsaegae's Offline and Logistics Strengths Meet Naver's Platform and AI Technology to Amplify Impact"

Shinsegae Group-Naver Business Partnership Agreement Signing Ceremony.

[Asia Economy Reporter Yuri Kim] Shinsegae Group and Naver (NAVER) have formed an alliance to provide new experiences that encompass both online and offline.

On the 16th, Shinsegae Group announced that key executives from both companies, including Kang Hee-seok, CEO of E-Mart, Cha Jeong-ho, CEO of Shinsegae Department Store, Han Seong-sook, CEO of Naver, and Choi In-hyuk, CEO of Naver Financial, met at the JW Marriott Hotel to sign a business agreement to strengthen comprehensive cooperation in commerce, logistics, membership, and mutual growth.

Through this business agreement, Shinsegae Group and Naver aim to dominate the online and offline distribution market. The number of users for Shinsegae Group and Naver reaches 20 million and 54 million respectively. By combining forces, they will secure 450,000 sellers, a nationwide logistics network capable of immediate, same-day, and dawn delivery, and over 7,300 offline hubs.

To this end, the two companies will conduct a stock swap worth 250 billion KRW. E-Mart will exchange 150 billion KRW and Shinsegae Department Store 100 billion KRW worth of shares with Naver to strengthen ties and mutual trust. E-Mart plans to swap 824,176 treasury shares (2.96% stake) for 389,106 Naver shares (0.24% stake), and Shinsegae will exchange 488,998 shares (6.85% stake) of Shinsegae International for 259,404 Naver shares (0.16% stake).

Shinsegae Group and Naver plan to strengthen cooperation across all areas of the distribution industry, including expanding online and offline commerce, enhancing logistics competitiveness, discovering new services based on new technologies, and fostering the growth of small and medium sellers through this business agreement.

A Shinsegae Group official stated, "Shinsegae Group, a leader in domestic online and offline markets, and Naver will establish a strong collaboration system covering all areas of distribution such as commerce, logistics, and new businesses," adding, "By combining Shinsegae Group’s online and offline distribution and logistics capabilities with Naver’s platform and AI technology, we plan to create a new ecosystem."

The strengths of Shinsegae Group, such as E-Mart’s grocery shopping and Shinsegae Department Store’s fashion and beauty luxury goods, will be combined with Naver’s platform. E-Mart’s leading offline grocery shopping capabilities will also integrate with Naver’s grocery shopping services and other Naver platforms. Utilizing the fashion and beauty assets and product planning capabilities of Shinsegae Department Store and Shinsegae International, they are also considering building luxury platforms with Naver to provide differentiated services to customers.

For example, new product launch shows of luxury brands owned by Shinsegae International could be unveiled through Naver’s live commerce. They are also discussing ways to provide premium services to customers by linking Shinsegae Department Store’s VIP club membership services with Naver, such as premium delivery and online one-on-one personal shopper services.

Shinsegae Group plans to accelerate nationwide fulfillment and last-mile service expansion by linking its nationwide logistics network with Naver’s logistics partners. To this end, Shinsegae Group and Naver will actively consider joint new investments related to logistics.

Utilizing Naver’s AI technology, they are jointly planning differentiated retail tech services such as expanding Naver smart ordering at Shinsegae Group’s business sites including Starbucks, E-Mart, Shinsegae Department Store, and Starfield; augmented reality (AR) navigation services at large stores like Starfield combined with AI product recommendations; and developing autonomous shopping carts using Naver Labs technology.

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