eBay is planning to sell off its South Korean unit

ebay selling south korea unit

eBay, the e-commerce giant, is looking to sell its South Korean unit in a deal that could yield nearly $5 billion, reported by a Seoul-based newspaper. The South Korean unit includes Gmarket, which is one of the largest online marketplaces in the country.

It has also been reported by the Korea Economic Daily that eBay has decided to sell 100 percent of its stake in eBay Korea. The buyers of the unit can include other South Korean retail giants such as Lotte Shopping, Shinsegae, and Hyundai Department Store Group, as well as private equity funds like MBK, the country’s largest private equity firm.

Back in 2009, eBay bought Gmarket for $1.2 billion and merged it with its South Korean unit, Internet Auction Co.

At that time, these combined companies accounted for 87% of the country’s online consumer-to-consumer market and more than 30% of the web shopping mall market.

But, over the years, many companies emerged as Gmarket’s competitors. One such competitor includes Softbank-backed startup Coupang which was found in 2010 and has the largest e-commerce market share, according to the B2C E-Commerce market 2019 report.