Sources, Telecom News, ET Telecom
By Joyce Lee
SEOUL: South Korea’s SK Telecom, retailer Shinsegae Group and private equity firm MBK Partners were among those who launched preliminary non-binding offers to sell eBay Inc’s South Korean business, the company Telecom and two sources familiar with the matter said on Tuesday.
EBay Korea operates the open-market e-commerce platforms Gmarket, Auction, and G9, and was South Korea’s third-largest e-commerce company in 2020 with 12.8% market share, according to Euromonitor.
The sources declined to be identified as not authorized to speak to the media. MBK Partners, Shinsegae Group and eBay Korea declined to comment.
Seoul-based analysts said eBay expected to recover up to 5 trillion won ($ 4.42 billion) from the sale.
However, they said the actual selling price may be lower, due to its recent drop in market share compared to competitors such as Korea’s No.1 e-commerce company Coupang, and the drawbacks of the shape. traditional “free market” electronic commerce unit. which simply connects sellers to buyers.
EBay Korea’s market share has been overtaken in recent years by Coupang, which directly manages inventory, differentiated itself with fast delivery and raised around $ 4.6 billion in a hit list in New York more earlier this month, as well as Naver Corp, which exploits South Korea’s online dominance. search portal.
EBay Korea’s 2020 revenue was estimated at around 1.3 trillion won, with a 5.3% increase in transactions year-on-year, compared to 19% growth in the South Korean commerce market electronics, said Kim Jin-woo, analyst at KTB Investment & Securities.