Shinsegae Group Chairman Chung Yong-jin, left, and OKO Group Chairman Vlad Doronin pose for a photo after signing a memorandum of understanding for a joint venture for hotel and property projects during a ceremony held at Josun Palace hotel in Seoul, in this photo provided by Shinsegae, Tuesday. Yonhap

Korean retail conglomerate Shinsegae Group said Tuesday it will establish a $500 million joint venture with global real estate developer OKO Group to develop luxury hotels and other properties.

Shinsegae Group Chairman Chung Yong-jin and OKO Group Chairman Vlad Doronin signed a memorandum of understanding in Seoul to establish the joint venture, the company said.

OKO Group owns luxury hospitality brands Aman and Janu and has developed hotels and branded residences under both brands.

The two companies will partner to develop luxury hotels and branded residences across Asia and North America while also pursuing commercial and mixed-use real estate projects in Korea, according to Shinsegae.