Alibaba establishes a new company in Korea valued at 4 billion dollars.

Alibaba Group Holding Limited has agreed to merge its operations in South Korea with the e-commerce platform of E-Mart Inc - known as G-Market - and establish a new company named JV, which will better enhance its competitive capabilities in the fast-paced online retail sector in the country.

Sources familiar with the matter told Bloomberg News that the new joint entity could be valued at around $4 billion, with Alibaba holding a 50% stake in the new venture.

Bloomberg reported that the deal will help Alibaba and G-Market confront local competitors, including Naver Corp and Coupang, as Alibaba seeks to expand its international presence to compensate for the slowdown in growth in its core Chinese e-commerce business.