[Featured Stock] Emart Retreats to 60,000 KRW Range Amid Doubts Over Synergy with Ali Cooperation

Emart retreated to the 60,000 won range on the 27th amid doubts about the synergy of the joint venture (JV) establishment with Ali International.

As of 9:25 a.m. that day, Emart was trading at 68,500 won on the KOSPI, down 7,000 won (9.27%) from the previous close. The stock price started at 76,000 won but plunged as sell orders poured in.

The previous day, after the market closed, Emart announced through a disclosure that it would contribute its stake in Gmarket in kind to establish a JV with Ali International (a 100% subsidiary of Alibaba). Through the joint venture, Alibaba plans to operate an online brokerage platform in Korea.

In the securities industry, finding a strategic partner for Gmarket is seen as positive, but it is difficult to predict the synergy effect.

Kim Myung-joo, a researcher at Hana Investment & Securities, said in a report on the day, "It is positive that Gmarket, which lacked a clear strategic direction, has secured a strategic partner, but it is difficult to predict a clear synergy effect through the JV establishment at this point. If the synergy strategy is materialized and the combined value of Emart's online business division is recognized at twice the current level (about 920 billion won), there will be a 22% upside potential."

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