Gmarket-Aliexpress JV launch delayed by Korea’s antitrust review

(Aliexpress)

The launch of a joint venture between South Korea’s Shinsegae Group and China’s Alibaba International has been delayed until the second half of 2025 due to extended review by the Fair Trade Commission (FTC).

The FTC received the joint venture filing in January, where both sides proposed combining full ownership of Gmarket and Aliexpress under Grand Opus Holdings. Although the review was initially expected to take up to 90 days, repeated requests for additional documentation have extended the process.

Since supplemental material submission periods are not counted in the formal review period, approval could take as long as 120 days or more.

The commission is scrutinizing whether the deal could limit competition in either the open market or cross-border e-commerce sectors. If the joint venture’s market is defined as the open market, most observers see little cause for concern. However, if it is defined as the cross-border e-commerce market, the KFTC believes it could lead to competition restrictions, such as control over prices or transaction terms.

As of 2024, Gmarket ranks third in domestic e-commerce by transaction value (accounting for 15 percent), trailing Naver Shopping (22 percent) and Coupang (20 percent), according to Samjong KPMG.

Aliexpress is estimated to hold over 50 percent of the cross-border market.

With the June presidential election looming, industry insiders believe the political environment could further delay the approval process.