The 'Shinsegae-Alibaba Alliance' is officially entering the domestic e-commerce market. Gmarket, which has been incorporated as a subsidiary of the joint venture (JV) between the two companies, plans to invest approximately KRW 700 billion next year alone to actively expand its business domestically and internationally.

James Jang (Korean name Jang Seung-hwan), CEO of Gmarket, held a media day at COEX in Seoul on the 21st, stating, "To once again become the number one open market in Korea, Gmarket will actively pursue a mid- to long-term strategy focusing on 'strengthening domestic competitiveness' and 'global expansion.'"


Gmarket plans to invest KRW 500 billion annually to reduce costs for sellers and enhance competitiveness. Initially, KRW 350 billion will be allocated to direct support programs aimed at promoting existing sellers and expanding sales. The company will fully cover customer discount costs during major promotions such as Big Smile Day, and will abolish the separate 20% commission on discount coupons, significantly reducing the annual seller burden of KRW 50 billion.

Additionally, support for new and small to medium-sized sellers will be strengthened. More than KRW 20 billion annually, a 50% increase from previous amounts, will be invested in development policies for these sellers, and a zero commission system will soon be introduced to waive fees for a certain period to help new sellers settle quickly. For small to medium-sized sellers, a dedicated sales team of over 100 specialists will be established to provide one-on-one tailored consultations from sales strategies to marketing.

The company plans to invest KRW 100 billion annually in customer promotions. Aggressive investments will be made focusing on four major events: Big Smile Day, Hangawi Big Sale, Seol Big Sale, and G-Rock Festival. Notably, the Big Smile Day event starting on November 1 will be expanded by more than 50% compared to the previous year. Next year, a quick delivery service will be introduced in collaboration with E-Mart.

Furthermore, CEO Jang stated that the future of e-commerce will be determined by the use of AI, announcing an annual investment of KRW 100 billion. The plan is to lead the market by combining Alibaba Group's accumulated AI technology know-how with Shinsegae Group's distribution expertise.

Initially, deep learning technology will be used to more precisely recommend products. Beyond associated search categories, potential interest keywords will be identified and suggested according to customer preferences. Efforts to enhance 'multimodal search' will also commence. Multimodal search identifies customer intent by including unstructured data such as feelings or senses, beyond simple text, and presents diverse search results. For example, searching for 'soft material running shoes' will involve image recognition of elements like 'softness' and 'material' to suggest suitable products.

AI will also be utilized in advertising, a means to assist seller promotions. By recommending suitable advertisements to the right customers according to the product and automating the overall management, advertising efficiency will be maximized.


Gmarket is also expanding its overseas market. Since launching Gmarket Global in 2006, the company has established a foundation for sellers to easily start overseas sales without complex procedures. Following the establishment of the joint venture, the 'G to Global' strategy is being actively implemented.

Gmarket recently partnered with Lazada, a Southeast Asian platform under Alibaba. As a result, products are being sold in five countries: Singapore, Malaysia, Thailand, the Philippines, and Vietnam. Lazada is a massive platform with approximately 160 million consumers across Southeast Asia, supplying about 20 million excellent products.

The company plans to expand its sales channels beyond Southeast Asia to various regions worldwide. The second target regions are South Asia and Southern Europe, including Spain and Portugal. By 2027, expansions into North America, Latin America, and the Middle East are planned. Through increased cross-border e-commerce, Gmarket expects to achieve an annual transaction volume (GMV) of over KRW 1 trillion within five years and secure hundreds of millions of new customers.

Gmarket believes that the 'G to Global' strategy will make it easier for sellers to expand their overseas sales channels, becoming a key competitive advantage that differentiates it in the domestic e-commerce market.


With repeated incidents of personal information leaks related to China, concerns persist regarding the joint venture. In response, Kim Jung-woo, Head of the PX (Product eXperience) Division, stated, "Even after the joint venture, Gmarket will solely manage and be responsible for customer information. Data required for AI learning will also be used exclusively on domestic servers in an independent cloud," adding, "No information that can identify individuals will be transmitted, and security management will be maintained at the highest global standards, so there is no need for concern."

In fact, even after the establishment of the joint venture, Gmarket and AliExpress will continue to operate as separate platforms. Previously, the Fair Trade Commission conditionally approved the corporate merger on the condition that Gmarket and AliExpress operate as separate platforms for the next three years and that domestic consumer data between them be separated.

Even after the three-year period, platform integration is unlikely. CEO Jang stated, "We plan to faithfully implement the Fair Trade Commission's orders, and we do not plan to include other platforms within Gmarket afterward," adding, "Gmarket is already linked with SSG.com and E-Mart Mall. We are considering a linkage approach rather than integration."

Additionally, the partnership between Gmarket and Shinsegae Group, including the Universe Club, will continue. CEO Jang added, "The Universe Club, Gmarket's main membership program, is a program involving Shinsegae affiliates. However, we are contemplating the membership strategy and direction. We will determine the direction in consultation with other Shinsegae affiliates."

Popular News