'Corona Shock' Modetour Sells Jiyutour After 6 Years of Acquisition
Resolution to Sell All 12 Million Shares of Jayu Tour Approved at Board Meeting
[Asia Economy Reporter Kim Ji-hee] Modetour, the second largest travel company in Korea, has put its subsidiary Jayutour up for sale. This comes six years after the acquisition.
According to industry sources on the 22nd, Modetour held a board meeting on the 5th and resolved to sell all 12 million shares of Jayutour it holds. Previously, Modetour acquired Jayutour in 2015 for 6.3 billion KRW.
The decision to sell appears to be due to the tourism market downturn triggered by the COVID-19 pandemic last year. According to the audit report, Modetour's consolidated sales last year plummeted 81.6% year-on-year to 54.8 billion KRW. Operating losses also reached 21.2 billion KRW, resulting in a deficit.
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Modetour plans to complete the sale of Jayutour within this year. However, the industry expects that the possibility of the sale being realized is low, as the tourism slump caused by COVID-19 continues this year as well.
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