Shinsegae Group has succeeded in attracting 1 trillion won in 'SSG.COM, which was established to be the Korean version of Amazon. It is planning to take the lead in the e-commerce market.
On Oct. 31, Shinsegae Group confirmed the investment of 1 trillion won from Affinity Equity Partners, a Hong Kong-based private equity fund (PEF) operator, and BlueRun Ventures (BRV), a global investment company.
The investment will be reportedly used to build an online center, extend logistics centers, and engage in marketing activities to enhance competitiveness in delivery of fresh food. Shinsegae plans to expand the current two logistics centers to six in the metropolitan area by 2020.
The group has also set a goal of achieving 10 trillion won in annual sales in 'SSG.COM by 2023. Analysts say that it will focus on growing online businesses amid stagnant growth of existing large retailers and department stores.
"If Shinsegae Department Store and E-Mart have been responsible for the growth of the group so far, future growth will be led by the new online corporation. We will focus all of the group's core capabilities on the online business and turn the business into a core distribution channel that surpasses department stores and E-Mart," Shinsegae Group Vice Chairman Chung Yong-jin said.
