E-mart, a South Korean new world group, announced on the 24th that it plans to acquire an 80% stake in the Korean business of eBay, a major US e-commerce company, for 3.4 trillion won ($ 3 billion).
It was revealed in a document submitted to the regulatory authority.
EBay has announced that it will continue to hold a 20% stake in its Korean business. The value of the business is about $ 3.8 billion, he said.
The transaction is expected to close by the end of this year or early next year. Regulatory approval is required.
South Korean Internet service giant Neighbor announced this week that it would withdraw from a bid to buy eBay’s South Korean business. Neighbors were participating in the bid jointly with E-mart.
According to analysts, eBay Korea was a leader in South Korea’s e-commerce market until 2015, but the pace of increase in trading has slowed since 2016. Competition with Coupang, which is currently the largest player, has intensified.
South Korea’s online shopping market expanded 41% from 2018 to 2020, but eBay Korea’s trading volume increased by an estimated 4%, according to a Samsung Securities report last week.
However, eBay Korea remains attractive, especially to traditional retail giants such as New World, which has not made a significant presence in the online shopping market after the outbreak of the new coronavirus.
EBay Korea is South Korea’s third-largest e-commerce company, with a share of about 12.8% in 2020, according to Euromonitor. It operates electronic commerce platforms such as “Gmarket,” “Auction,” and “G9.”