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| Two workers at GS Retail hold GS Retail and GS Shop signs at a GS25 convenience store in Seoul in this 2020 file photo. Korea Times file |
By Kim Jae-heun
Local retail giant GS Retail is investing 20 billion won ($1.74 million) in the country's largest secondhand marketplace app, Danggeun Market.
According to a local investment bank, Sunday, GS Retail will join in Danggeun Market's Series D investment round as a new participant. The retail giant is reviewing the investment through a local private equity fund
The secondhand goods marketplace platform is nearing the end of its Series D round to attract 180 billion won in funding. Its valuation ― which has multiplied 15-fold from its Series C investments in 2019 ― is currently estimated at 3 trillion won ($2.62 billion).
Danggeun Market has 15 million monthly average users, but is a latecomer to the online secondhand business. It launched its service after Beongaejangteo, the operator of a mobile secondhand marketplace since 2011. However, Danggeun Market has grown into the most influential platform here with its local resident-based infrastructure. GS Group, the mother company of GS Retail, reportedly recommended that its affiliate participate in Danggeun Market's Series D round.
GS Retail has long been eyeing Danggeun Market. The two firms signed a memorandum of understanding in February to introduce a "last-minute discount sale" service, whereby the online secondhand marketplace will sell its products at 16,000 stores owned by GS Retail.
A number of major companies here are beefing up their collaboration with the secondhand market service app. Until 2008, the market size of domestic online secondhand trading firms stood at 4 trillion won, but this has soared fivefold to reach 20 trillion won. In February, Lotte Shopping, a retail unit of Lotte Group, invested 30 billion won in Junggonara, the main rival of Danggeun Market. Meanwhile, Hyundai Department Store established a business partnership with Beongaejangteo.
GS Retail is taking aggressive steps to expand its online business after merging with GS Home Shopping in July. It is re-organizing its investment portfolio based on prospective startups, in order to create synergy between its online and offline businesses.
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