What: the retailer and the tech giant team up to compete with e-commerce players, such as Coupang

Why is it important: retail and tech are joining forces in South Korea

South Korean retail giant Shinsegae Group and information technology behemoth Naver are combining forces to gain an upper hand in the fast-changing e-commerce field.

Chiefs of the two sides signed a stock swap deal worth KRW 250 billion won (USD 221 million) and a strategic partnership agreement.

Shinsegae said it would be combining its expertise in retail, both online and of physical stores, with Naver’s expertise in online platform operation and artificial intelligence technology to provide the best benefits to customers. The retail giant also said it aims to create a new retail ecosystem where they can work and grow together with individual and small business sellers.

Shinsegae and Naver ink stock swap deal