The headquarters of eBay Korea in Gangnam-gu, Seoul, on the 17th, where Shinsegae Group is reported to acquire eBay Korea. / Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Jo In-kyung] Shinsegae Group's Emart has finalized the acquisition of eBay Korea, which operates Gmarket and Auction.
Emart announced on the 24th that it plans to sign a 'Share Purchase Agreement (SPA)' to acquire 80.01% of eBay Korea's shares for approximately 3.44 trillion KRW.
Earlier, eBay headquarters reportedly held a board meeting on the same day and approved the agenda to sell 80% of its shares to Shinsegae Group. eBay headquarters will retain the remaining 20% stake in eBay Korea.
With the acquisition of eBay Korea, Emart will instantly become the second-largest e-commerce company in South Korea, following Naver.
In the domestic e-commerce market, estimated at about 161 trillion KRW last year, Shinsegae's online division, SSG.com, accounted for only about 3.9 trillion KRW in transaction volume, representing a 2.4% market share. After acquiring eBay Korea, the transaction volume will reach 24 trillion KRW, and the market share will approach 15%, putting it on par with Naver Shopping (28 trillion KRW, 17.4%) and Coupang (22 trillion KRW, 13.7%).
Even after acquiring eBay Korea, Emart is expected to operate each platform separately for the time being, including SSG.com, Gmarket, and Auction. However, the strategy focuses on enhancing consumer benefits by allowing SSG.com members to receive perks through Gmarket and Auction.
The necessary funds for acquiring eBay Korea have been largely secured. As of the first quarter, Emart's cash and cash equivalents amounted to 1.0637 trillion KRW, and it secured over 2 trillion KRW last month through the sale of Emart's Gayang branch (682 billion KRW) and other means. Additionally, discussions are underway regarding loans and corporate bond issuance using assets such as Hanam Starfield as collateral.
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