KT·Shinsegae Form Strategic Alliance... Leading Online and Offline Distribution DX

'Business Consortium' Project Organization Launched... Accelerating Cooperation in 5 Sectors
Leading Companies in Finance, Content, Mobility, and Distribution Join Hands to Expand Digico

Yoon Kyung-rim, Head of KT Group Transformation Division (left), and Kang Hee-seok, CEO of Emart, are posing for a commemorative photo. Photo by KT

[Asia Economy Reporter Oh Su-yeon] KT and Shinsegae are joining forces. They will collaborate comprehensively, from jointly utilizing their respective offline stores to membership services and advertising marketing. The plan is to accelerate digital transformation (DX) in the distribution sector by consolidating group-level capabilities.

KT and Shinsegae Build Future Digital Ecosystem

On the morning of the 14th, KT signed a strategic partnership with Shinsegae Group at the JW Marriott Hotel in Seocho-gu, Seoul, to create an integrated online and offline digital ecosystem. Key representatives from both companies attended the signing ceremony, including Yoon Kyung-rim, Head of KT Group Transformation Division; Kang Guk-hyun, Head of KT Customer Division; Choi Won-seok, CEO of BC Card; Choi Nam-cheol, CEO of KT Estate; Kwon Hyuk-gu, Head of Shinsegae Group Strategy Office; Kang Hee-seok, CEO of Emart; Son Young-sik, CEO of Shinsegae Department Store; and Lim Young-rok, CEO of Shinsegae Property.

Kang Hee-seok, CEO of Emart, said, "The cooperation between Shinsegae Group and KT is a journey toward building a future-oriented digital ecosystem that eliminates the boundaries between online and offline," adding, "We will achieve continuous results through close practical consultations."

Yoon Kyung-rim, President and Head of KT Group Transformation Division, stated, "By combining Shinsegae Group’s know-how with KT’s digico capabilities, we will lead customer experience innovation as well as digital transformation in distribution and related industries," and added, "Since both companies share a consensus on expanding the digital ecosystem, we will consolidate group-wide capabilities to contribute to improving the quality of life for customers and enhancing the competitiveness of Korean industries."

Collaboration in Five Areas: Membership, Stores, Logistics, Real Estate, and Advertising Marketing

The two companies will introduce an integrated membership program. Leveraging KT’s strengths in telecommunications, content, and finance services and Shinsegae Group’s powerful distribution infrastructure including Emart, Shinsegae Department Store, and SSG.com, they will explore ways to offer differentiated benefits exclusive to KT and Shinsegae.

They will also accelerate the digital transformation of offline stores. To enhance customer convenience and optimize space management, KT’s big data analysis-based DX solutions will be applied to Emart and Emart24. This includes improving the use of self-checkout counters and deriving optimal shelf arrangements and shopping routes. They also agreed to jointly foster AI-based logistics business. Using KT’s digital logistics subsidiary RollLab’s digital logistics platform, Shinsegae’s nationwide logistics centers will be advanced. Furthermore, joint investment and development in AI-integrated logistics delivery will expedite digital logistics innovation.

They will jointly promote real estate mega project development and investment. Combining Shinsegae Group’s experience in developing complex commercial facilities with KT and KT Estate’s expertise in ICT real estate and smart city infrastructure development, they plan to introduce future-oriented lifestyle spaces that will become global landmarks. Additionally, through KT’s subsidiary Nasmedia, they will collaborate in digital advertising and marketing with Shinsegae Group.

To support the execution of this cooperation, KT and Shinsegae Group have organized a business cooperation body composed of key executives and working-level staff from both companies. Project teams focusing on the five business areas will be activated to accelerate business execution speed, and they will continuously explore additional areas for cooperation.

Meanwhile, KT has formed partnerships with leading companies across various industries such as finance, content, and mobility. Earlier this year, KT forged a strong alliance with Shinhan Bank through a 437.5 billion KRW equity swap, jointly pursuing financial DX and global expansion. In March, KT received a 100 billion KRW investment from CJ ENM into KT Studio Genie and established a business cooperation committee involving key executives from both companies. In September, KT strengthened future mobility business cooperation by exchanging 750 billion KRW worth of shares with Hyundai Motor Group.

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