11st said on Feb. 12 it signed a strategic memorandum of understanding with Chinese e-commerce company JD.com. It plans to build a global e-commerce system linking South Korea and China through cooperation based on JD.com's global platform and logistics infrastructure. It will also support 11st sellers' overseas expansion.

11st held a strategic MOU ceremony on Feb. 4 at JD.com's headquarters in Beijing with JD Crossborder, JD.com's cross-border e-commerce unit, and logistics affiliate JD Logistics. Executives from the three companies attended, including Shin Hyun-ho (신현호), head of 11st's Strategy Group, Marcia Mao, head of business at JD Crossborder, and Zuoda, head of JD Korea, the South Korean unit of JD Logistics.

Under the agreement, 11st plans to roll out a cross-border e-commerce business with JD.com to sell products from 11st sellers to Chinese consumers. The service is expected to open in the first half of this year.

The company plans to create synergies in products, logistics and delivery based on the three companies' business strengths, and to develop global sales channels for 11st sellers. It plans to create new growth opportunities and promote South Korean manufacturers' products to global customers.

The company expects the agreement to lower barriers to entering the cross-border e-commerce market that have been high due to document-heavy onboarding, complex customs procedures and the burden of logistics costs. 11st sellers are expected to be able to sell their products more easily on JD.com's JD Worldwide. JD.com's cross-border e-commerce unit currently has more than 20,000 brands across more than 100 countries.

JD Logistics, a global logistics company listed in Hong Kong, is expected to handle the overall logistics process, including warehousing, customs clearance and delivery, enabling access to fast and stable logistics services.

The companies also plan to continue cooperation in various ways, including pursuing a direct-purchase business to sell JD.com's competitive products on 11st.

Shin said the cooperation with JD.com is meaningful in that it goes beyond a simple platform partnership to build a constant distribution pipeline linking South Korea and China. He said the company will provide one-stop support from a global sales platform to logistics so 11st sellers can focus only on improving product competitiveness.