BEIJING, July 20 -- The E-Mart Supercentre Company based in the Republic of Korea (ROK) plans to add more than US$20 million to its retail joint venture in the city this year to boost its network of shops in the Yangtze River Delta region.

    The venture, named the Shanghai E-Mart Supercentre Co Ltd, will have a registered capital of about US$50 million.

    This is set to soar even higher. Jung Min Ho, general manager of the Shanghai company, said on Monday that investment will double in the next few years, reaching US$100 million. The firm plans to have 30 supercentres in the region by 2010.

    The original venture in China, with initial capital of US$25 million, was set up in 2003. The Korean Shinsegae Group has a 49 per cent stake in it as does the Shanghai No 9 Department Store Co Ltd. The Shanghai Business Centre Co Ltd holds 2 per cent.

    According to the joint venture agreement, E-Mart will have 10 outlets in Shanghai by 2007, said Jung. E-Mart has already opened three outlets in Shanghai, costing about 300 million yuan (US$36 million).

    "The first round of the development in Shanghai indicates our initial success in the China market, although we are a latecomer," he added.

    Last weekend, the Korean firm signed an agreement with the Shanghai Pudong Development (Group) Co Ltd to rent a site for 20 years, for its first outlet in Pudong.

    E-Mart, a subsidiary of the Korean Shinsegae Group Company, has more than 70 supercentre outlets in South Korea.

    China is the first country E-Mart has set up supercentres outside ROK. "When the business is successful, we will extend into Southeast Asia," said Jung.

    Shanghai is already home to many foreign supermarkets including Carrefour, Metro, Lotus and Wal-Mart.

    "Shanghai is the most competitive city in Asia in terms of supercentres. But E-Mart believes it still has room to develop," he said.

    "We will open 30 supercentres in the Yangtze River Delta region by 2010 including in Shanghai," he said.

    Suzhou, Wuxi and Nanjing in Jiangsu Province and Hangzhou and Ningbo in Zhejiang Province will be the first choices, he said.

    The firm will open outlets in Suzhou and Hangzhou next year.

    Jung said a rough calculation showed that the cash needed for the outlets ranges from US$8 million to US$15 million.

    E-Mart will open its first supercentre in Tianjin in October. Its plan is to have five outlets in Tianjin and 10 in Beijing by 2007, Jung said.

    E-Mart is expected to set up a special "holding company," probably in Shanghai, to control and manage its business in China, Jung said.

    "But the timetable is not available at the moment," he added.

    (Source: China Daily)