1st Generation E-commerce 'Interpark' Up for Sale

Specialized in Performance and Travel Industries... Naver, Kakao, Lotte Mentioned as Acquisition Candidates

[Asia Economy Reporter Kim Cheol-hyun] The sale of Interpark, a first-generation e-commerce company, is being pursued. As competition intensifies in the e-commerce industry following the spread of COVID-19, the market landscape is expected to rapidly reorganize due to the moves of various companies seeking survival strategies.

According to industry sources on the 13th, Lee Ki-hyung, the largest shareholder and CEO of Interpark, recently selected a sales advisory firm and is pushing forward with the sale of shares. CEO Lee holds 28.41% of the shares, including those held by related parties. Interpark was started as an in-house venture by CEO Lee while working at Dacom and launched Korea's first internet shopping service in 1996. However, after selling Gmarket to eBay Korea and the entry of large corporations into the market, its position has narrowed. Specializing in performance ticket reservations and travel products, Interpark currently holds about 70% market share in the performance ticketing sector. The decline in performance and travel industries due to COVID-19 has negatively impacted earnings, which is believed to be related to the current sale push. The industry also views the competitive situation in the e-commerce market as a background for the sale decision.

Interpark has strengths not only in e-commerce competitiveness but also in specialization in performance and travel industries, making it a candidate for acquisition by portal companies such as Naver and Kakao, as well as distribution companies like Lotte. Interpark states that while it is reviewing options, no concrete decisions have been made. However, with the sale push of first-generation company Interpark, it is expected that the moves of small and medium-sized companies seeking survival in the e-commerce industry will also accelerate. As market restructuring centered on the so-called ‘Big 3’?Shinsegae, which is acquiring eBay Korea, Naver Shopping, and Coupang?proceeds rapidly, it is analyzed that companies will engage in individual battles for survival. An industry insider predicted, "If various alliances and mergers and acquisitions (M&A) occur among companies, significant changes will take place in the market landscape."

This content was produced with the assistance of AI translation services.