SEOUL -- South Korea's retail conglomerate, Shinsegae, signed a final contract with two foreign firms to draw an investment of one trillion won ($877 million) into its integrated e-commerce division aimed at nurturing online shopping malls.
Shinsegae said Wednesday that the deal was signed with BRV Capital Management, an investment firm targeting tech companies, and Affinity Equity Partners, a private equity firm.
The group aims to launch a separate e-commerce unit in the first quarter of next year by combining the online business divisions of its discount store chain operator, E-Mart, and Shinsegae Department Store. The new unit would become the group's key distribution channel with an annual revenue of 10 trillion won by 2023.
Group vice chairman Chung Yong-jin, the group's de facto head, has promised to nurture online shopping malls independently or by acquiring a domestic e-commerce platform.