(Yicai) Dec. 3 -- Alibaba Group Holding has spent KRW100 billion (USD71.3 million) to acquire a 5 percent stake in fashion platform Ably, marking the Chinese tech giant's first e-commerce investment in South Korea, The Securities Times reported today.

After the transaction, Ably's valuation increased to KRW3 trillion (USD2.1 billion), making it a unicorn, the Seoul-based platform operator announced yesterday.

Founded in 2015, Ably specializes in fashion and technology. It operates the Ably mobile application, a consumer-to-consumer marketplace that enables independent designers and influencers to create digital storefronts. Moreover, it owns two men's style platforms: Fashion Mall 4910 and Amood which targets the Japanese market.

The move is seen as a reference point for Alibaba's future global investment strategy. In recent years, the Hangzhou-based owner of Tmall and Taobao has been expanding its business through investments, mergers, and acquisitions. It currently owns e-commerce platforms Lazada in Southeast Asia and Paytm Mall in India.

The strategic partnership with Alibaba provides a solid financial foundation for Ably to expand its business scope, improve user experience, and enhance supplier cooperation to achieve more sustainable development, according to Ably.

The investment not only demonstrates Alibaba's recognition of Ably but also reflects its appreciation and confidence in the South Korean market, The Securities Times reported, citing an e-commerce industry professional.

Alibaba is expected to bring advanced technological and management experiences, helping Ably enhance its user experience and operating efficiency, the industry insider said. Moreover, Ably will leverage Alibaba's platforms and resources to expand its business scope and market share, pursuing more sustainable development.

On Nov. 21, Alibaba Chief Executive Eddie Wu announced the formation of a new e-commerce business group, signaling the firm's commitment to investing in its core business amid stiff competition from emerging rivals like Pinduoduo, the owner of Temu.

Editor: Emmi Laine