eBay Inc. has announced purchase of its Korea business by Emart. The company said in a statement that eBay will sell an 80.01 percent stake in its Korean businesses for 3.44 trillion KRW or approximately 3 billion dollars of gross cash proceeds to Emart.
“This deal brings together two strong ecommerce and retail companies that can unlock tremendous potential in Korea and provide more choice for customers. We believe this move further optimizes our portfolio and creates value for eBay shareholders,” said Jamie Iannone, chief executive officer, eBay.
The company added that together, eBay Korea and Emart can build a 360-degree ecosystem which will allow full touch points with customers in categories ranging from grocery to general merchandise. Over the next four years, Emart plans to invest more than 1 trillion KRW in fulfilment centers. Offline stores will also be utilized to serve as fulfilment centers, reinforcing Shinsegae Group’s supply chain management system.
During fiscal year 2020, eBay’s off-platform businesses in Korea contributed over 14 billion dollars in GMV, and approximately 1.4 billion dollars in revenue, with operating margins in the mid to high single digit range.