The Emart sign installed on the exterior wall of the Emart Yongsan branch. /Courtesy of News1

Emart announced on the 25th that it will merge with Emerald SPV Co., Ltd.

Emerald SPV is a special purpose company established for the acquisition of Gmarket, in which Emart holds 100% equity. Through this merger, Emart plans to simplify the structure leading to "Emart-Emerald SPV-Apollo Korea-Gmarket" and enhance the transparency of its governance structure.

An Emart official noted, "We are merging to simplify the governance structure ahead of establishing a joint venture with Alibaba," adding that "the aim is to enhance governance transparency and improve management efficiency."

Shinsegae Group has previously announced in December last year that it would establish a joint venture with Alibaba International. The investment ratio between the two companies is 50-50, and Shinsegae Group will participate by contributing Gmarket as an in-kind investment. Gmarket and AliExpress Korea will be incorporated as subsidiaries in the joint venture.