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Following last week’s deal in which Naver and Shinsegae bought around $221 worth of the other firm’s shares, the South Korean retail group and tech giant will unveil a luxury shopping platform this June or July, The Korea Times reports.
While the link up could help streamline Shinsegae’s logistics operations and boost gross merchandise volume, Naver is betting on its partner’s luxury credentials to strengthen its advertising, e-commerce and fintech services, according to the report. The two players are also reportedly in talks to fuse their membership systems.
The news comes hot on the heels of local e-commerce giant Coupang’s $3.5 billion US IPO as well as reports that Shinsegae is among the potential buyers of eBay’s Korean business. Shinsegae subsidiary Shinsegae International is the country’s largest importer of luxury brands, which could set it up to become the South Korean market’s leading online vendor for premium goods as shopping continues to shift online post-pandemic. Despite Coupang’s size, it has yet to stock top luxury brands; meanwhile, rival retail group Lotte is struggling to keep up with digitally savvy rivals.