Interpark Holdings Announces Merger with Subsidiary Interpark

Cost Reduction through Duplication Elimination, Management Rationalization, and Establishment of a Swift, Unified Decision-Making Structure

[Asia Economy Reporter Kim Cheol-hyun] Interpark Holdings and Interpark are starting anew through a merger. On the 1st, both companies held board meetings and announced that they resolved to merge in order to rationalize management, enhance shareholder value, and secure a swift and unified decision-making structure. The surviving entity after the merger will be Interpark Holdings, and the company name will be 'Interpark.'

Until now, the Interpark Group maintained a parallel business structure with Interpark Holdings, a pure holding company, having Interpark and iMarketKorea as its core subsidiaries. With this merger, the surviving entity, Interpark Holdings, will transition to a serial structure with iMarketKorea as its subsidiary. This will enable a faster and more unified decision-making structure. Additionally, through this merger, the Interpark Group will move away from the holding company system.

The company explained that the merger is expected to enhance the market value of Interpark Holdings, which will exit the holding company system, and improve shareholder value due to the effective cancellation of treasury shares resulting from not issuing new shares for treasury stock held by Interpark. Furthermore, the shortage of circulating shares, which had been an obstacle to Interpark's stock price increase, is also expected to be resolved through this merger.

The faster and unified decision-making structure secured through the merger and the elimination of redundant resources are also expected to be significant benefits of the merger. It is anticipated that additional management efficiency can be achieved by removing duplicated resources and simplifying the decision-making process during the operation of both companies.

An official from Interpark Group stated, "In an unpredictable business environment due to the COVID-19 crisis, the newly launched merged entity will overcome the current difficult circumstances through faster and more efficient management." The merger of the two companies is expected to be finalized after a special shareholders' meeting in May.

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