Alibaba Group Holding Ltd., one of the world’s largest e-commerce platforms, has joined forces with South Korea’s leading retail chain E-Mart Inc. to strengthen its position in the highly competitive South Korean online retail market. This strategic partnership combines Alibaba’s local operations with E-Mart’s e-commerce platform.
According to Bloomberg HT, E-Mart’s stock exchange filing confirms that AliExpress International and Gmarket will form a 50-50 joint venture. The new entity will fully own Gmarket, with plans for significant additional investments in the partnership.
Insiders familiar with the matter, speaking anonymously, estimate the venture’s valuation at approximately $4 billion. Following the announcement, E-Mart’s shares rose by 5.5% in Seoul, adding $1.4 billion to its market capitalization.
Meanwhile, Alibaba’s shares, listed in Hong Kong, have gained around 11% this year, pushing the company’s valuation above $200 billion. However, this collaboration comes at a challenging time for South Korea, as political turmoil—triggered by the impeachment and martial law declaration of President Yoon Suk Yeol—has caused a sharp decline in consumer confidence, marking its steepest drop since the COVID-19 pandemic.
Once a dominant player in China’s e-commerce landscape, Alibaba has faced mounting competition from emerging rivals such as PDD Holdings Inc. and ByteDance Ltd. The company, under the leadership of co-founder Eddie Wu, who assumed the CEO role over a year ago, is now focusing on consolidating its core businesses and channeling investments into high-potential growth areas.
This collaboration with E-Mart underscores Alibaba’s commitment to expanding its global reach while adapting to evolving market dynamics in one of Asia’s most promising retail landscapes.
