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The Korea Herald
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THE INVESTOR
March 29, 2024

Retail & Consumer

‘Shinsegae had eyes on SK Planet’s 11st’

  • PUBLISHED :August 24, 2017 - 17:25
  • UPDATED :August 24, 2017 - 17:34
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[THE INVESTOR] Shinsegae Group Vice Chairman Chung Yong-jin said on Aug. 24 that the retail giant had reviewed acquiring SK Planet’s online open market 11st in its latest e-commerce push.

“We are considering diverse options for online expansion. It is true that we reviewed the purchase of 11st,” he told reporters at the opening event of Shinsegae’s new Starfield shopping mall in Goyang, Gyeonggi Province.

But he didn’t confirm if the talks are still ongoing.


Chung Yong-jin (center)



The 11st, one of the nation’s top online markets, has suffered from operating losses in recent years despite stellar growth in sales. Its operating loss reached 200 billion won (US$177.19 million) last year.

According to industry sources, SK Planet contacted offline rivals such as Lotte and Shinsegae to get further funding for the money-losing 11st. But the firm has denied any talks to sell off the business.

“Our CEO made it clear that we are not selling 11st. There is no change in his stance,” an SK Planet spokesperson told The Investor on condition of anonymity. “We are currently figuring out the best way to cooperate with retail companies for our next big leap.”

Although the progress of talks between the two retail groups for the acquisition is uncertain, Shinsegae is expected to further strengthen its online business, including a fresh partnership with another big online retailer.

“There will be a surprise announcement before the year-end,” the Shinsegae vice chairman added without elaborating.

Shinsegae’s online transactions stand at about 2 trillion won, which compared to 11st’s 6.8 trillion won. Currently, the No. 1 online shopping site is eBay Korea, the Korean unit of the US retail giant that owns Auction and Gmarket, with its annual transactions exceeding 14 trillion won.

By Song Seung-hyun (ssh@heraldcorp.com)

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