Emart Absorbs Emerald SPV Merger... "Gmarket-Ali Joint Venture Process"

Simplifying Governance Structure Ahead of Joint Venture Establishment

Emart will absorb the special purpose company established to acquire the online shopping mall Gmarket. This is aimed at simplifying the governance structure ahead of the establishment of a joint venture (JV) between Gmarket and Alibaba Group.

Emart Headquarters. Photo by Jo Yong-jun

On the 25th, Emart announced that it will absorb Emerald SPV. Emerald SPV is a special purpose company established by Shinsegae Group in 2021 to acquire the online shopping mall Gmarket.

An Emart representative stated, "This merger is a decision to simplify the governance structure ahead of the establishment of a JV with Alibaba Group," adding, "We expect this merger to enhance transparency in governance and improve management efficiency."

Earlier, in December last year, Shinsegae Group announced the establishment of a 50-50 joint venture (Grand Opus Holding) with Alibaba International, a subsidiary of Alibaba Group. Gmarket and AliExpress Korea will be incorporated as subsidiaries under the joint venture.

Emart will contribute 100% of Gmarket’s shares in kind, while Alibaba will invest 100% of AliExpress Korea’s shares and $225 million USD (approximately 320 billion KRW) in cash. Currently, the Fair Trade Commission is reviewing the corporate merger notification related to the establishment of the Shinsegae-Alibaba joint venture.

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