Wednesday, July 30, 2014         

 Print   Email   Comment | View 5 Comments   Most Popular   Save   Post   Retweet

Yahoo to exit South Korea by end of year

By You-Kyung Lee

Associated Press

LAST UPDATED: 05:07 a.m. HST, Oct 19, 2012

SEOUL, South Korea » Yahoo Inc. said it will close its South Korean web portal and an Internet advertising business, cutting its losses in a market where it has struggled for over a decade.

Yahoo's South Korea unit said today its Seoul office with over 200 employees will be shut by the end of this year. The decision comes after former Google executive Marissa Mayer took the helm at the struggling U.S. Internet company in July.

The closure of the Korean arm is part of efforts to "create a stronger global business by realigning resources," Yahoo Korea said in a statement.

Since entering South Korea in 1997, Yahoo has operated a namesake portal in Korean and an Internet advertising company, Overture Korea.

Yahoo's South Korean market share has become negligible in recent years as users flocked to Naver, Daum and other portals operated by South Korean Internet firms.

Yahoo Korea was also hurt by the rapid adoption of smartphones and the mobile Internet, which made it more difficult to attract advertisers to web portals designed for desktop computers. Overture Korea added to problems by failing to renew key advertising deals.

Yahoo Inc. has been struggling against competition from Google and Facebook, failing to lift its advertising revenues even though companies increased their online marketing budgets. Yahoo replaced two CEOs in a year.

A Yahoo Korea official said Yahoo doesn't plan to close other overseas businesses.

The Sunnyvale, Calif.-based company is scheduled to release its third-quarter earnings on Monday.

Yahoo Korea is wholly owned by its U.S. parent company.

 Print   Email   Comment | View 5 Comments   Most Popular   Save   Post   Retweet

You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email commentfeedback@staradvertiser.com.
Leave a comment

Please login to leave a comment.
Big C wrote:
"Yahoo Korea is wholly owned by its U.S. parent company." ... Recipe for failure in an asian country.
on October 19,2012 | 06:34AM
kennysmith wrote:
i can see that yahoo.com is doing a good thing of closeing that place.
on October 19,2012 | 07:00AM
loquaciousone wrote:
Does this mean that I can no longer order my kimchee on line using my yahoo email?
on October 19,2012 | 07:41AM
Big C wrote:
I heard that the New Kapolei Foodland has a Kimchee Bar.
on October 19,2012 | 09:44AM
mikethenovice wrote:
Yelp it.
on September 4,2013 | 07:19PM
Breaking News