Shinsegae affiliate SSG.COM secures Olympus as new financial investor

SSG.COM, the e-commerce brand of Korea’s retail giant Shinsegae

Korean retail giant Shinsegae Group’s online shopping mall operator SSG.COM has secured Olympus, a special purpose company created by Korean banks and securities firms, as its new financial investor.

E-Mart Inc. and Shinsegae Inc., major shareholders of SSG.COM, said in a regulatory filing on Thursday that Olympus will acquire a 30% stake in SS.COM, or 1.32 million shares, from two existing financial investors – Affinity Equity Partners and BRV Capital Management.

The stake is worth 1.15 trillion won ($818 million).

The transaction, to be completed on Nov. 26, will allow Affinity Equity and BRV Capital to exit from their investment in SSG.COM.

Olympus is a special-purpose investor created by six local banks, including state-run Korea Development Bank and Shinhan Bank, and four brokerage firms, including NH Investment & Securities Co.

Shinsegae is Korea’s leading retail group

The two private equity firms each own a 15% stake after together injecting 700 billion won in 2019 and an additional 300 billion won in 2022 under put option contracts.

They invested in SSG.COM on the condition that the e-commerce platform’s gross merchandise value (GMV) surpass 5.16 trillion won by 2023 or be eligible for an initial public offering before their put option contracts expire on May 1, 2024.

As Shinsegae failed to meet those requirements, the two financial investors asked the retail giant to find another investor to replace them.

Shinsegae later promised to guarantee their exit.

E-Mart is the supermarket brand of Shinsegae Group

E-MART’S Q3 EARNINGS

Meanwhile, E-Mart on Thursday reported its third-quarter results.

The company said its July-September quarter operating profit reached 111.7 billion won on a consolidated basis, up 43.4% from a year earlier. The latest figure marks the highest since the first quarter of 2021.

On a standalone basis, its operating profit was 122.8 billion won, the highest in four years.

Third-quarter sales stood at 4.67 trillion won, up 5.3% from a year earlier.

E-Mart also announced a 100 billion won capital injection into its convenience store subsidiary, E-Mart24 Inc., to support its expansion and secure additional investment capacity for new store openings.

By Jiyoon Yang

yang@hankyung.com

In-Soo Nam edited this article.

Latest News from Korea

Latest Entertainment from Korea

Learn People & History of Korea

  • A Journey Through Time: The History of Korean Art
    Introduction to Korean Art Korean art, a vital reflection of the nation’s rich heritage and cultural evolution, holds a unique place within the broader tapestry of East Asian art forms. Distinguished by its innovative spirit and aesthetic principles, Korean art dates back thousands of years, offering insights into the historical context and socio-political dynamics of the region. As both a… Read more: A Journey Through Time: The History of Korean Art
  • A South Korean soldier forcibly cuts a young man’s hair in front of others during a nationwide crackdown on men with long hair and women wearing short skirts in South Korea – 1970s
    This was during the Fourth Republic of South Korea. The President Park Chung-hee was declared dictator of South Korea for 18 years until he was assassinated and replaced in a coup-de-etat for about 3 years. I’ll post some links about it: https://en.wikipedia.org/wiki/Fourth_Republic_of_Korea https://en.wikipedia.org/wiki/Park_Chung-hee https://en.wikipedia.org/wiki/Assassination_of_Park_Chung-hee submitted by /u/goodhot0006 [link] [comments]
  • Jeong Cheol
    Introduction to Jeong Cheol Jeong Cheol, a prominent figure in Korean history, emerged during the Joseon Dynasty, which lasted from 1392 to 1910. His life, spanning from 1536 to 1593, encapsulates an era rich in cultural and intellectual development. As a scholar, poet, and government official, Jeong Cheol’s influence was significant, embodying the complexities of Confucian philosophy and its application… Read more: Jeong Cheol
  • From War to Miracles: The Evolution of South Korea Amidst Global Struggles
    The End of the Korean War: A Historical Overview The Korean War, which began in 1950, was a significant conflict that arose from the geopolitical tensions following World War II. The war pitted North Korea, backed by the Soviet Union and China, against South Korea, supported by the United States and other United Nations member states. The culmination of this… Read more: From War to Miracles: The Evolution of South Korea Amidst Global Struggles
  • Lee Hwang
    Introduction to Lee Hwang Lee Hwang (퇴溪 李滉), regarded as one of Korea’s foremost Confucian scholars of the 16th century, made significant strides in the development of Confucian thought and education. Born in 1501, he emerged from a distinguished family in the region of Gyeonggi Province, an area where Confucianism was gaining prominence as a guiding ethical framework. His early… Read more: Lee Hwang