11st Sells Entire Stake in Korea Center... Amazon Benefit Expectations Decline↓

Korea Center Shares 3.47 Million Traded on Market
Sequential Sale Starting Late October
2 Years After Investment at End of 2018

[Asia Economy Reporter Cha Min-young] 11st, which became Amazon's partner for entering the Korean market, has completely sold off its investment stake in Korea Center, the largest domestic logistics and direct purchase shopping platform company, thereby severing the official link between 11st and Korea Center.

SK subsidiary 11st announced on the afternoon of the 26th through a public disclosure that it had disposed of its entire 4.56% stake (3,471,126 shares) in Korea Center. The total sale amount was 34.6 billion KRW, accounting for 7.26% of its equity capital as of the end of the first half of this year.

The sale was conducted through on-market trading rather than a block deal (off-hours large volume trading). 11st began sequential sales from October 30, with concentrated sales observed particularly on the 19th and 20th, immediately following a sharp rise in the stock price. On the 19th, 11st held a board meeting and resolved to sell shares amounting to more than 5% of its equity capital.

Korea Center's stock price continued to rise this year due to the boom in overseas direct purchase services. On the 18th, when the connection with 11st was highlighted, the stock hit the upper limit immediately after the market opened and closed at 10,250 KRW per share. On the 19th, it closed at 11,550 KRW.

11st disclosed its acquisition of Korea Center shares at the end of December 2018. 11st acquired a total of 5% stake, consisting of 578,521 existing shares and 578,521 new shares, establishing their relationship. The investment purpose was a strategic alliance to activate commerce services and global business.

An 11st official explained, "The sale of Korea Center shares has been discussed since the first half of this year as a measure to focus capabilities on core e-commerce businesses," adding, "There has been no discussion with Korea Center regarding Amazon's sales."

Meanwhile, Amazon's plans to establish a logistics and delivery system in Korea remain unspecified. However, since the 18th, it has been offering free shipping for Korean direct purchase orders over $99 and has launched promotions targeting the Korean consumer market, raising expectations.