eBay Korea is the third largest e-commerce company in the “country of kimchi” with a market share of about 12.8% in 2020. The company operates the Gmarket, Auction and G9 platforms.
According to market research firm Euromonitor, eBay will sell its Korean subsidiary (eBay Korea) to retailer Shinsegae Group and e-commerce company Naver for about 4 trillion won ($3.6 billion).
eBay Korea is the third-largest e-commerce company in the “country of kimchi” with a market share of about 12.8% in 2020. The company operates the Gmarket, Auction, and G9 platforms.
Currently, Shinsegae, Naver and eBay Korea have not commented on this information.
The Korea Economic Daily and other newspapers reported that Lotte Shopping, the e-commerce arm of South Korean retail giant Lotte, is also competing to acquire eBay Korea. Lotte has opened the ambitious online shopping mall Lotte ON, bringing together all six retail subsidiaries under Lotte Shopping.
However, its unstable operation has turned customers away from this e-commerce platform and the company is trying its best to implement aggressive marketing strategies to attract interest but almost no results. Lotte could have a comeback if it buys eBay Korea.
South Korea is the fourth largest e-commerce market in the world. Driven by the COVID-19 pandemic, e-commerce activity has skyrocketed, accounting for 35.8% of the retail market in 2020, compared with 28.6% respectively in 2019.
Shinsegae and Naver have established a retail and e-commerce partnership in March 2021 by purchasing shares worth 250 billion won in each other’s branches.