What: China's Alibaba Group is considering acquiring a 5% stake in the South Korean fashion platform Ably, potentially valued at 100 billion won (US$72.4 million).

Why it is important: This move could significantly bolster Alibaba’s presence in South Korea, aligning with its broader strategy to expand its global footprint and diversify its investments in key markets. This could also provide Alibaba with a stronger foothold in the fashion industry, potentially driving regional growth.

Alibaba Group is reportedly exploring the acquisition of a stake in South Korean fashion marketplace Ably, with the deal estimated at 100 billion won. This initiative is part of Alibaba's broader investment strategy in South Korea, including a USD 1.1 billion commitment to develop logistics and business operations within the next three years. Ably, established in 2018, operates a platform with over 50,000 sellers, initially serving as a wholesale fashion hub for Dongdaemun Fashion Mall. Despite operational losses in 2021 and 2022, Ably achieved its first annual profit in 2022, reporting revenues of 259.5 billion won. The potential investment by Alibaba, alongside interest from other global investors like Ontario Teachers’ Pension Plan and CVC Capital Partners, highlights the platform's growing influence in the e-commerce sector. Neither Alibaba nor Ably has publicly commented on the negotiations.

Alibaba Group to invest in Korean fashion platform Ably