US eBay officially announced that it is conducting a strategic review (selling) related to its Korean business. Until now, eBay Korea has denied this even to the issue of sale that has been raised several times. It is expected that the sale of eBay Korea will accelerate as the head office directly reveals its position on the Korean business.
On the 19th (local time), eBay in the United States said through a newsroom, “We have begun the process of exploring and reviewing various strategic alternatives for business in Korea.” He said.
Bloomberg News said, “eBay is exploring the possibility of selling online marketplaces in Korea.” EBay Korea said, “There is nothing that can be revealed other than the position of the headquarters.”
EBay Korea operates open markets such as Gmarket, Auction, and G9 in Korea. In 2019, it recorded sales of KRW 1.95 trillion and operating profit of KRW 61.5 billion, which is a 12% and 27% increase from the same period last year. According to foreign media, about 11% of annual eBay sales are generated in Korea.
As of 2019, eBay Korea has been in the black for 15 consecutive years, which contrasts with domestic e-commerce companies that continue to see losses. However, it is true that the growth rate is largely behind by Coupang.
It seems that eBay is considering the sale of eBay Korea to maximize shareholder value in a situation where e-commerce competition is fierce. However, the high ransom price is highly likely to be an obstacle to the sale. In the industry, it is known that eBay is thinking of 5 trillion won as an expected sale price of eBay Korea.
Today, when the sale rumors were reported through foreign media, eBay Korea announced that it will appoint Jeon Hang-il, who is leading the eBay Japan business, as the new representative to replace Kwang-yoon Byun.
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CEO Jeon Hang-il was appointed as the CEO of eBay Japan in 2018 and has more than doubled his performance in two years. In particular, the former CEO is a professional manager who has accumulated various business capabilities such as sales and marketing at large domestic companies such as Lotte Department Store, LG International, and Samsung C&T before joining eBay Korea. He has performed various tasks such as establishing growth strategies, developing new businesses and new products, and strengthening innovation capabilities.
EBay Korea said, “It has nothing to do with the appointment and sale of the new representative,” and “I will not comment on the sale until the final decision is made at the headquarters.”