Portal operator Naver Corp. and retail giant Shinsegae Group will swap shares in a deal valued at 250 billion won to strengthen their foothold in the highly competitive e-commerce sector.
Naver will purchase 150 billion won worth of stocks in Shinsegae's discount store chain operator E-Mart Inc. for a 2.96 percent share and buy 100 billion won worth of fashion retailer Shinsegae International Inc. for a 6.85 percent stake.
Meanwhile, E-Mart and Shinsegae will purchase 250 billion won worth of Naver shares for a combined 0.4 percent share.
Shinsegae Group Vice Chairman Chung Yong-jin and top portal operatorNaver co-founder Lee Hae-jin agreed on an e-commerce collaboration in January.
In October, Naver had a share swap agreement worth 600 billion won with logistics giant CJ Group to enhance competitiveness in the e-commerce and entertainment industries.
Coupang Inc.'s successful debut on the New York Stock Exchange last week, which raised $4.6 billion, intensified competition in South Korea's online retail sector.
Coupang's rise has prompted South Korea's e-commerce players to seek partnerships, mergers and acquisitions, and IPOs.