Fair Trade Commission Approves Qoo10's Acquisition of Interpark and Wemakeprice

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The acquisition of domestic competitors Interpark Commerce and WEMAKEPRICE by Singapore-based e-commerce company Qoo10 has received post-approval from the Korea Fair Trade Commission (KFTC).

According to the KFTC on the 9th, the merger and acquisition (M&A) is unlikely to restrict competition in the open market (online shopping intermediary) and overseas direct purchase markets. The commission judged that if small and medium-sized businesses are integrated, they could grow into effective competitors to restrain companies like Naver and Coupang, thereby promoting competition.

Qoo10 was founded in Singapore by Koo Young-bae, the founder of Gmarket, after selling Gmarket. It operates open market businesses in the Asian region and also runs an overseas direct purchase agency business targeting domestic consumers.

Interpark Commerce is a company that split off from the former Interpark, leaving the tour and ticket business behind and separating the shopping and book business divisions. WEMAKEPRICE started in 2010 as a direct purchase social commerce company but has since shifted its business model to an open market.

The KFTC explained the approval reason, stating, "In the open market, there are many top players such as Naver (42.41% market share last year) and Coupang (15.91%). After the merger, the combined market share of the companies involved is only 8.35% (Timon 4.60% + Interpark Commerce 0.85% + WEMAKEPRICE 2.90%). Considering that many businesses fiercely compete on product assortment, price, and delivery time, the possibility of price increases or collusion due to the merger is minimal."

Regarding the overseas direct purchase market, the combined market share of Qoo10 and others is only 8.57% (Qoo10 7.07% + Timon 0.65% + Interpark Commerce 0.46% + WEMAKEPRICE 0.38%). Considering it is a fragmented market with many domestic and international players participating, the commission saw little concern for competition restriction.

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