South Korea’s antitrust regulator said Sunday it has approved Singapore-based Qoo10 Pte. Ltd.’s purchase of two online shopping platforms, as the move is not likely to disrupt competition in the market.
The decision came after Qoo10 purchased the entire stake in Interpark Commerce Corp. from the accommodation booking app Yanolja Co. for around 150 billion won (US$114.9 million). The Singaporean firm also bought an 86 percent stake in Wemakeprice Inc., another online shopping platform here.
“We have decided to approve the takeover unconditionally, as concerns about the move disrupting competition in the related market are limited,” the Fair Trade Commission (FTC) said in a statement.
The FTC noted that various players already exist in the South Korean e-commerce market, including giants, such as Naver Corp. and Coupang Inc.
Even if Qoo10 purchases the two firms, its combined shares in the online open market would just be around 8.35 percent, including those of TMON Inc., another South Korean firm acquired by the Southeast Asian firm.
The FTC approved the purchase of TMON by Qoo10 in February.
The regulator further emphasized that the deals are expected to have minimal impact on competition in other areas as well, including the market for direct purchases from foreign countries.
“Various businesses are currently engaging in fierce competition in terms of products sold, prices and shipping speed,” the FTC said. “The takeovers are not likely to lead to price hikes or collusion.”
Naver Shopping accounted for 42.41 percent of the local online open market in 2022, followed by Coupang with 15.91 percent and 11Street with 12.74 percent.
Qoo10 is an e-commerce platform founded by Ku Young-bae, who founded Gmarket in South Korea. He sold his stake in the platform to U.S.-based eBay Inc. in 2009.
Source: Yonhap News Agency