Koreacenter Reports 213% YoY Increase in Operating Profit... "Effect of Danawa Acquisition"

Highest Growth Rate in the Data Commerce Sector

Koreacenter logo. (Photo by Koreacenter)

[Asia Economy Reporter Lim Chunhan] Korea Center announced on the 15th that its consolidated operating profit for the third quarter of this year reached 9.2 billion KRW, a 213% increase compared to the same period last year.

The total transaction amount (GMV) was 3.22 trillion KRW, up 24% year-on-year, and EBITDA increased by 146% to 15.8 billion KRW. While the existing business remained solid, the performance of Danawa has been reflected since the second quarter, leading to a significant year-on-year growth in third-quarter results. Overall company profitability also improved significantly, with the EBITDA margin rising from 8.2% to 12.7%. This performance is attributed to Korea Center’s diversified e-commerce business portfolio encompassing three business divisions: data commerce (Danawa, Enuri), e-commerce solutions (MakeShop, PlayAuto), and cross-border commerce (Malltail), covering B2C and B2B, domestic and overseas markets, as well as services, solutions, and data.

By business division, the data commerce sector recorded the highest growth rate year-on-year due to the acquisition of Danawa. The data commerce division’s GMV grew 146% compared to the same period last year. The data commerce division is preparing various collaborations and new service launches to ensure that the newly acquired Danawa’s monthly active users (MAU) contribute not only to the same-type platform Enuri but also to the MAU growth of other group platforms such as Malltail.

The e-commerce solutions division showed steady growth in GMV and customer numbers, driven by the high growth of PlayAuto (multi-market linkage solution) and MySoho (mobile shopping platform). The continuous increase in customers is expected to contribute to stable future growth and successful expansion into related solutions and services.

Despite challenging external conditions such as high exchange rates, the cross-border commerce division achieved steady growth in GMV, shipment volume, and operating revenue. With the ongoing expansion of the global logistics network and service enhancement, a new leap forward is anticipated once external conditions improve.

Kim Girok, CEO of Korea Center, said, "Despite difficult domestic and international business environments, all three business divisions?data commerce, e-commerce solutions, and cross-border commerce?showed balanced growth," adding, "We will do our best to ensure that strategically prepared businesses, such as subscription pricing services, deliver the best possible performance."

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