Shinsegae's Investment in e-Commerce

South Korea's retail mogul Shinsegae Group has attracted 1 trillion won (US$938 million) to bolster its e-commerce business.

The conglomerate said it has signed a memorandum of understanding with two foreign investment firms including BRV Capital Management to raise funds worth over 1 trillion won for its new commerce unit.

With the new project, Shinsegae plans to hive off the online business divisions of Shinsegae Department Store and its discount store chain E-Mart Inc. The group also plans to launch a brand new affiliate dedicated to its e-commerce business, which will eventually take on a role as the group's key distribution channel.

Last year, each of Shinsegae's E-Mart mall and online department store exceeded one trillion won in annual sales, with the group seeking to wrest the top position in the domestic e-commerce industry.

The business group also said it is seeking to make inroads into the U.S. food market with E-Mart's premium food brand "PK Market".