Shinsegae Inc,. Emart, KT sign MOU for three-way cooperation

Industry

Published: 14 Dec. 2022, 17:45

Shinsegae Inc,. Emart, KT sign MOU for three-way cooperation

From left: Shinsegae Property CEO Im Young-rok, Shinsegae Department Store CEO Son Young-sik, Emart CEO Kang Heui-seok, KT’s head of transformation group Yun Kyoung-lim and head of KT’s customer business group Kang Kook-hyun pose for a photo to celebrate signing a memorandum of understanding on Wednesday. [SHINSEGAE]

Shinsegae Inc., Emart and KT will cooperate with each other in logistics, marketing, digitization, membership services and property development, following the signing of a memorandum of understanding (MOU) Wednesday.

Technologies of Lolab, a logistics subsidiary 80 percent owned by KT, will be used to make deliveries at companies such as Emart more efficient. The logistics company offers artificial intelligence-based services to find the most optimal route for deliveries and efficient fulfillment center operations.

Shinsegae is planning to create a membership program that offers benefits across various affiliates such as SSG.com, Emart and Shinsegae Department Store. Shinsegae said giving its users additional discounts on KT mobile plans or other services KT offers are some options the two companies are discussing.

The same could happen the other way around, with KT membership users getting access to the upcoming Shinsegae membership program.

KT’s technologies will also be used in Shinsegae’s property development projects such as at the Shinsegae Starfield Malls and department stores. KT’s telecommunication networks, urban air mobility technologies, virtual reality technology and know-how in robot operations will be applied to new malls that Shinsegae and Emart plan to build.

Nasmedia, a digital media company owned 42.9 percent by KT, will work with Shinsegae and Emart companies to jointly create online advertisement campaigns.

“Combined with Shinsegae’s know-how in the retail market and KT’s digital experience, we believe that the two companies can lead innovation in customer experience and the digital transition happening in retail,” said Yun Kyoung-lim, head of KT’s transformation group. “Both companies have a similar point of view about digitization, and we plan to closely cooperate with each other to enhance customers lives and the competitiveness of Korea’s economy.”

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]