An eBay sign at an office building in San Jose, California, May 28, 2014. REUTERS/Beck Diefenbach/File Photo

SEOUL, June 24 (Reuters) – South Korean retailer Shinsegae Group’s E-Mart Inc (139480.KS) said on Thursday it plans to acquire an 80% stake in eBay Inc’s (EBAY.O) South Korean business for 3.4 trillion won ($3 billion).

With the deal, traditional retail giant Shinsegae gets a much-needed boost in the Korean e-commerce sector, where it has lagged after competitors such as No. 1 Coupang , while eBay Korea gains a powerful backer after years of underperforming, analysts said.

EBay will retain a 20% interest in the Korean business, whose implied value is approximately $3.8 billion, eBay said in a statement.

The transaction is expected to close by year-end or early next year, subject to regulatory approvals.

Naver Corp (035420.KS), which had teamed up with E-Mart in the bidding process for eBay’s South Korean business, said earlier…

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