A new joint venture between South Korea’s Shinsegae Group and China’s Alibaba International has begun operations, signalling the start of what many in the retail sector expect will be a reshaping of the country’s e-commerce landscape.
Grand Opus Holdings, the JV formed by the two companies, recently finalised its board structure, placing Shinsegae Chairman Chung Yong-jin as Board Chair alongside four other directors – three of whom represent Alibaba-affiliated entities – underscoring the Chinese group’s influence in the partnership.
Retail analysts say the JV marks Alibaba’s most direct push into South Korea’s “home market”, using Shinsegae’s domestic brand power as a bridge. The concern is that the influx of ultra-cheap Chinese goods – already a defining force in the global e-commerce market – will intensify price wars and further squeeze local manufacturers.
The expansion comes as Chinese commerce platforms are already gaining ground. According to WiseApp Retail data, AliExpress and Temu ranked second and third nationwide in monthly active users, surpassing 11th Street and closing in on market leader Coupang. Meanwhile, China’s Jingdong is preparing logistics operations in Korea, signalling another potential entrant.
Coupang, seeking to defend its top position, has pledged fresh investment. Founder Bom Kim told investors on 5 November that Korea remains a “high-potential, resilient market”, promising more products, expanded marketplace offerings and increased automation in logistics. Coupang has separately announced plans to invest three trillion won (US$2bn) by next year to expand domestic infrastructure.
