Naver and Shinsegae Exchange Shares Worth 250 Billion KRW... Move to Dominate Distribution Sector

[Asia Economy Reporter Kang Nahum] Naver and Shinsegae Group are strengthening their online and offline distribution alliance through a 250 billion KRW equity swap.

On the 16th, Naver announced that it will exchange shares worth 150 billion KRW of Emart's treasury stock and 100 billion KRW of Shinsegae International's shares with Shinsegae.

Naver has 54 million members, and Shinsegae has 20 million Shinsegae Point Card subscribers. A combined total of 450,000 sellers are active on both platforms.

The two companies plan to combine Emart's cutting-edge automated logistics center NE.O (NExt generation Online store) and over 7,300 offline locations with the technology of 'Naver Jangbogi' to offer various benefits to both sellers and users. They aim to enhance user satisfaction by guaranteeing fast delivery such as same-day and next-day shipping, and to increase seller trust through data-driven demand forecasting and inventory placement solutions.

Furthermore, they will continue discussions to provide logistics services tailored to each sector through cooperation with various delivery partner companies, and are also considering joint investments related to this.

Naver's shopping live technology and know-how, web original content capabilities, and Shinsegae Group's product planning skills will also be combined. In particular, they plan to make fashion and beauty luxury brands, which were difficult to access online, available on the internet. They will build an online luxury store using new product launch shows and exclusive live commerce, and provide various services such as '1:1 personal shopper' service and premium delivery linked to department store memberships.

In addition, integrated benefits related to 'Naver Plus Membership' and 'Shinsegae Points' are under discussion. The two companies especially plan to maximize benefits such as the use and accumulation of Naver Pay at Emart offline stores nationwide and free delivery promotions for Naver Plus Membership holders.

Han Seong-sook, CEO of Naver, said, "As this is a collaboration between Naver and Shinsegae, each possessing the best capabilities online and offline, users and sellers can expect shopping experiences and various commerce business opportunities that were previously unimaginable. We will present a cooperation case that breaks the prejudice that neighborhood markets and large supermarkets cannot coexist, and introduce a new model that grows together with SMEs in various fields."

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