eBay and Young Bae Ku, the founder of Gmarket, Korean eCommerce company which was acquired by eBay in 2009, have entered into a joint venture agreement to expand Gmarket existing online marketplaces in Japan and Singapore.
The agreement will eBay’s presence in Japan and Singapore and provides a foundation for longer term expansion of Gmarket into other Asian markets.
Lorrie Norrington, president of eBay Marketplaces, said: “eBay partnership with Young Bae Ku combines his expertise in Asia and Gmarket proven Korean online marketplace model to enhance our long-term position and growth in the region.
“This joint venture is a sign of our continued commitment to help grow and lead e-commerce across Asia by offering more opportunities for sellers and extraordinary buying experiences for consumers.”
Upon launch of the new joint venture, Mr Ku will be the chief executive of the new entity and will drive the vision for Gmarket’s future growth and expansion in the Asian market.
Under the new joint venture, eBay will have 49% stake while the entity owned by Mr Ku will have a 51% stake. eBay will contribute assets from Gmarket’s existing Japanese and Singaporean businesses to the joint venture, and eBay and Mr Ku will make financial contributions of approximately $10m each to the joint venture.
In addition, eBay will also license Gmarket technology and brand on behalf of the joint venture, while Mr Ku will provide local management expertise.
Mr Ku, said: “We are excited to join with eBay, one of the world’s most recognized e-commerce brands, in combination with our management team’s proven track record of establishing successful online marketplaces.
“The joint venture will allow us to provide an enhanced e-commerce experience tailored for the Japanese and Singaporean markets, and to capitalise on our companies’ experience in the Asian eCommerce industry.”
