Bidding candidates are listed! eBay Korea may be sold in May

It is understood that eBay Korea's official list of bidding candidates includes E- mart , Lotte Shopping , SK Telecom , and private equity fund ( PEF) operating company MBK Partners.

On the 29th, the distribution industry revealed that eBay Korea's sales management company notified these companies of their inclusion in the shortlist.

Recently, E-mart, Lotte Shopping, SK Telecom and other companies have publicly expressed their intention to participate in the eBay acquisition battle in South Korea.

Lotte Shopping CEO Kang Hee-tae said at the regular shareholders' meeting on the 23rd: "We are very interested in acquiring eBay Korea.

E-mart CEO Kang Hee-seok also said at the shareholders' meeting held the next day, "We are seriously considering acquiring eBay Korea."

SK Telecom representative Park Jung-ho explained the plan to acquire eBay Korea, “SKT is also developing a business business. In this situation, we will participate in the acquisition war and consider the overall situation and formulate a flexible strategy.”

These companies will conduct on-site inspections of eBay Korea and other procedures, and are expected to propose the final acquisition price in the formal bidding to be held in May or June this year.

It is understood that in 2000, eBay Korea launched its online mall and online auction business, which quickly expanded and attracted first-class suppliers and loyal customers. Last year, the department's operating profit was 85 billion won (75 million US dollars) and sales were 1.3 trillion won.

But in recent years, eBay Korea has been squeezed by e-commerce giants Naver and Coupang, while activist investors like Elliott Management have urged eBay to divest assets with poor growth prospects.

The eBay parent company was reportedly seeking a deal worth 5 trillion won, a price many initially thought would lead to a failed bid.

"The company's valuation is too high compared to the weak growth potential of its Korean business," said a securities analyst.

But then Coupang went public on the U.S. market on March 11, with a market value of over $80 billion, raising $4.6 billion along the way, which will be used to expand fulfillment centers and other projects to improve the company's distribution network.

Separately, Naver, which has the leading total transaction value among South Korean e-commerce groups, has begun strengthening its distribution capabilities through a partnership with express delivery giant CJ Logistics.

Lower-ranked businesses believe that buying eBay Korea is key to avoiding obsolescence as two major competitors grow.

SK Securities analyst Yoosung-woo said: "In the Internet retail industry, achieving scale and not losing the initiative are the keys, and gaining market share through acquisitions makes a lot of sense."

South Korea

eBay Korea

E-commerce