Yahoo to exit South Korea by end of year

Oct 19, 2012 by Youkyung Lee

(AP)—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 Friday 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 .

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 and , 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- on Monday.

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

Explore further: Ticketfly buying WillCall for on-premise data

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Google to set up YouTube channel for Korean pop

Nov 07, 2011

Google executive chairman Eric Schmidt agreed Monday to set up a YouTube channel exclusively for South Korean pop music, as he began a visit aimed at expanding his company's presence in the country.

Google 'mulls bid for Yahoo!'

Oct 22, 2011

US Internet giant Google is mulling a bid for rival Yahoo! and has talked to at least two private-equity firms to consider how the deal would be financed, The Wall Street Journal reported on Saturday.

Recommended for you

Ticketfly buying WillCall for on-premise data

11 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0