What: The news follows the recent deal in which Naver and Shinsegae bought around USD 221 worth of the other firm’s shares.

Why is it important: While Naver is betting on its partner’s luxury credentials to strengthen its advertising, e-commerce and fintech services, Shinsegae could become the leading online vendor for premium goods.

The link up could help streamline Shinsegae’s logistics operations and boost gross merchandise volume. The two players are also reportedly in talks to fuse their membership systems.

The news comes hot on the heels of local e-commerce giant Coupang’s USD 3.5 billion US IPO as well as reports that Shinsegae is among the potential buyers of eBay’s Korean business.

Shinsegae is the country’s largest importer of luxury brands, which could set it up to become the South Korean market’s leading online vendor for premium goods as shopping continues to shift online post-pandemic. Despite Coupang’s size, it has yet to stock top luxury brands; meanwhile, rival retail group Lotte is struggling to keep up with digitally savvy rivals.

Shinsegae, Naver to Launch Luxury E-Commerce Platform