Korea Center, Danawa Merger Proposal Passed at General Meeting... "Birth of a Mega Platform Company"

Merger Deadline Scheduled for November 30

Koreacenter, Danawa logo. (Photo by Koreacenter)

[Asia Economy Reporter Lim Chun-han] Korea Center and Danawa, the nation's No.1 price comparison platform, will merge as of the 30th of next month.

Korea Center announced on the 19th that the approval of the merger agreement with Danawa was passed as originally planned at the extraordinary general meeting of shareholders. Korea Center held a board meeting on August 16th to approve the merger plan with Danawa and plans to complete the merger by the end of this year. The merger date is scheduled for the 30th of next month, and the listing date of the new shares from the merger is December 16th.

This merger between the two companies was pursued to strengthen business competitiveness and enhance corporate value. Upon completion of the merger, a large-scale e-commerce platform company will be created with a total transaction amount (GMV) of 13 trillion KRW based on 2021, over 20 million monthly active users (MAU), approximately 500 billion KRW in annual sales, and an EBITDA of 67.3 billion KRW. The merged entity will have a dominant market position and competitiveness across diversified business sectors including data commerce (Danawa, Enuri, etc.), e-commerce solutions (MakeShop, PlayAuto), and cross-border commerce (Malltail).

Kim Gi-rok, CEO of Korea Center, said, "Through this merger, the platforms and solutions held by both companies will secure greater synergy effects and competitiveness," adding, "We will build an integrated database and develop a commerce data hub business."