Korea’s E-mart to Open in the Kingdom

• 29 October 2017
• Property Focus
• 2883 Views

Through a deal between local conglomerate Royal Group and Korea’s largest retail market operator E-mart, consumers in Cambodia will soon enjoy sourcing discounted products in this modern hypermarket.

Scheduled to open in the first quarter of 2019, E-mart is incorporated in Cambodia via a joint venture agreement signed in late July in Phnom Penh between Royal Group Chairman Oknha Kith Meng and E-mart CEO Lee Gab-soo. The consortium’s bridging event was witnessed by Cambodian Commerce Minister H.E. Pan Sorasak and Korean Ambassador to Cambodia H.E. Kim Weon-jin.

At the MoU signing on 28 July in Phnom Penh, Royal Group senior vice president Rami Sharaf noted that the final details of the shareholder division would be subject to further discussion with the final agreement to be signed later this year.

According to Mr. Sharaf, this Cambodia-South Korea joint venture will invest USD120 million for the first E-mart investment project on three hectares of landmass located at an as-yet-unspecified location in Phnom Penh. But experts believe the market will likely be erected in the capital’s Sen Sok district, fast becoming the capital’s centre for retail developments.

Founded in 1993, E-mart operates 160 branches across South Korea. The hypermarket has already expanded its businesses in China, Vietnam, and Mongolia. Last year, the net sale of its combined retail branches was worth SKW36, 739 billion (about USD3 billion).

Through its unique core competency, E-mart will allow shopping lovers in Cambodia to experience exploring discount items at a lower price than any other retail stores. The outlet sells a wide range of products from clothes to food and beverages, and carries other retail lines. The market also offers an online purchasing platform at its website where buyers can view products digitally and place orders with a delivery service.

Royal Group was incepted in 1991 and is chaired by Oknha Kith Meng. With 25 firms under its subsidiary list, the conglomerate is expanding its business empire across various industries including telecommunications, media, banking, insurance, resorts, education, property, and agriculture.

Kith Meng announced the development of the E-mart hypermarket just two months after the construction of Thai-based Makro supermarket kicked off in May and scheduled to open to consumers by end of this year. Makro Cambodia is run by another tycoon, Oknha Ly Yong Phat, Chairman of LYP Group.

The two massive outlets are the latest retail market developments announced in 2017. By 2018, the nation will welcome six supermarkets to open businesses including AEON Mall 2, Parkson Mall, Olympia Plaza, Makro, a supermarket inside The Bridge building, and an underground supermarket in Vatanac Capital, according to the Bayon TV website.

Minister of Commerce, H.E. Pan Sorasak applauded the consortium saying the two firms’ ties to build the supermarket in Cambodia would benefit the nation greatly. The benefits he mentioned on 28 July via the Ministry of Commerce’s official Facebook page are introducing a modern shopping experience, modern retail chains, and advanced innovation as well as creating job demand for locals that will only contribute to the nation’s economic growth.

“E-mart is like Aeon Mall….This is good for consumers in Cambodia as they will enjoy choosing products with a variety of choices at competitive prices in the Kingdom,” said the Minister according to the Khmer Times.

• Business and Market