Naver Officially Declines Participation in eBay Korea Acquisition... Shinsegae Participates Alone (Comprehensive)

[Asia Economy Reporter Kang Nahum] Naver has ultimately withdrawn from the bidding for the acquisition of eBay Korea. As a result, the acquisition of eBay Korea will be pursued solely by Shinsegae Group's Emart.

Naver announced on the 22nd that it had considered acquiring a partial stake in eBay Korea as part of strengthening its business competitiveness but ultimately decided not to participate in the acquisition process.

Initially, Naver planned to join forces with Shinsegae Group to acquire eBay Korea. Specific plans were even proposed, such as investing about 1 trillion KRW on the condition of acquiring a 20% stake.

Industry analysts interpret Naver's decision as a judgment that the synergy effect after acquiring eBay Korea would not be significant. This contrasts with Shinsegae Group, which urgently needed the acquisition due to its lack of prominence in e-commerce.

In fact, Naver has established a shopping ecosystem fully integrated within its own portal, making it the undisputed industry leader. Naver Shopping recorded a transaction volume of 28 trillion KRW last year, with a market share of 17.4%. Especially, its commerce business division achieved sales of 1.0896 trillion KRW last year, a 37.6% increase compared to the previous year.

Additionally, the requirement to undergo a corporate merger review by the Fair Trade Commission (FTC) appears to have been a burden for Naver. Regulatory authorities such as the FTC may view the merger of the industry’s first-ranked Naver and third-ranked eBay Korea negatively.

Thus, the acquisition of eBay Korea will be pursued solely by Shinsegae Group. Shinsegae is currently reported to be negotiating with the U.S. eBay headquarters to acquire an 80% stake in eBay Korea. It is also said to have received letters of intent for loans from commercial banks and securities firms to finance the acquisition.