Shinsegae Partners with AliExpress to Shake Up Korea’s E-commerce Landscape
In a bold move that could reshape Korea’s online retail market, Shinsegae Group has teamed up with China’s global e-commerce titan AliExpress to form a new joint venture called Grand Opus Holding.
The partnership is poised to challenge the dominance of Coupang and Naver, who currently battle for first and second place in Korea’s e-commerce sector.
The Korea Fair Trade Commission (KFTC) recently gave the deal conditional approval, requiring the two companies to keep consumer data separate for the next three years, especially in the overseas direct-purchase (cross-border e-commerce) segment. This stipulation aims to prevent excessive concentration of power and protect fair competition.
Why This Alliance Matters
The joint venture merges Shinsegae’s Gmarket and Auction with AliExpress Korea, creating a powerful new player in the market.
Under the agreement:
Consumer data such as names, IDs, emails, phone numbers, and purchase history cannot be shared between the companies for cross-border shopping.
In other areas, customers may opt-in to share their data voluntarily.
The KFTC highlighted that the two companies would have a combined 41% market share in Korea’s cross-border shopping market, making them the clear leader.
With Gmarket’s 50 million members and AliExpress’s global product and ratings database, there were concerns about network effects giving them an unfair competitive advantage.
The “Co-Growth Platform” Vision
The joint venture brands itself as a “unique co-growth platform” designed to:
Reduce over-concentration on a few large domestic platforms.
Expand global sales channels for Korean products (especially K-beauty, home goods, and lifestyle brands).
Ownership is split evenly, with Shinsegae and Gmarket representing Korea, and Alibaba International representing China, each holding a 50% stake.
For sellers on Gmarket and Auction, this alliance means:
Support for customs clearance, logistics, local delivery, returns, and customer service
Access to Alibaba’s Southeast Asian logistics network, allowing them to sell directly to countries like Singapore and Vietnam, with plans to expand to over 200 countries in the future.
From Alibaba’s perspective, this partnership opens the door for Korean brands to more easily reach global customers, boosting reverse direct-purchase (Korean exports to foreign consumers) sales.
Alibaba Gains Big — and So Does Shinsegae
By combining Alibaba’s international logistics muscle with Shinsegae’s offline retail infrastructure, the partnership promises:
Faster and more reliable delivery and return services
A counter to Coupang’s market-leading Rocket Delivery service
AliExpress also gains:
Access to Gmarket’s logistics network
A chance to shed its reputation for counterfeit goods by leveraging Shinsegae’s trusted brand image
Opportunities to strengthen domestic sales of Chinese products in Korea
For Gmarket, the partnership improves its financial stability and expands its product catalog, particularly with sellers targeting Southeast Asia.
However, some experts worry that China may benefit more, raising concerns about mixing Korean and Chinese products in ways that blur brand identities.
Market Landscape: Who’s on Top?
According to a retail analytics firm, as of August 2025, Korea’s monthly active users (MAU) in e-commerce were as follows:
Coupang: 34.22 million (dominant #1)
AliExpress Korea: 9.2 million
Gmarket: 6.68 million
Auction: 2.66 million
Combined, the joint venture will have 18.54 million MAU, roughly half of Coupang’s total.
Meanwhile, Naver Plus Store sits at 4.31 million, and Naver has recently partnered with Kurly, a fresh grocery delivery specialist, to strengthen its position in that niche.
The Rise of Chinese E-commerce in Korea
Korea’s e-commerce market boomed during the pandemic, cementing a two-horse race between Coupang and Naver.
But by late 2023, Chinese giants like AliExpress and Temu disrupted the market with ultra-low prices, forcing smaller domestic players out.
The impact has been huge:
Luxury platform Ballant even filed for corporate rehabilitation.
Other small and mid-sized e-commerce companies have been wiped out or forced into mergers.
To counter this, well-capitalized players like Shinsegae, Naver, and Coupang are now forming strategic alliances to stay competitive:
Shinsegae + AliExpress
Naver + Kurly
What This Means for Consumers
The combination of AliExpress’s ultra-low-cost supply chain and Shinsegae’s massive Gmarket/Auction user base is expected to intensify price competition, especially in cross-border shopping.
Industry insiders predict:
“Coupang and Naver will have no choice but to respond with aggressive promotions and lower fees to defend their market share.”
However, there are concerns:
If cheap Chinese goods flood into Gmarket, it could trigger a race to the bottom in pricing.
It remains uncertain whether simply combining user bases will actually improve profitability for Gmarket and AliExpress.
Meanwhile, Coupang and Naver are doubling down on fresh grocery delivery, a segment where Gmarket and AliExpress have yet to prove they can compete.
There’s also speculation that SSG.com, another Shinsegae subsidiary, may eventually join the collaboration, though Shinsegae denies any immediate plans for this or overseas IPO ambitions.
Looking Ahead: The 2026 Turning Point
The true impact of this joint venture may not be fully visible until mid-2026, when:
Delivery speed and return processes improve
Customer satisfaction rises
Sellers see tangible sales growth
If successful, Korea’s e-commerce market could shift from today’s two-giant system (Coupang + Naver) to a three-way rivalry, with Shinsegae + AliExpress emerging as a formidable third player.
For consumers, this could mean lower prices, better service, and more choices, while for the industry, it signals an intense, high-stakes battle for dominance in one of the world’s most competitive e-commerce arenas.
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