U.S. web giant eBay acquires domestic online auction site

The nation`s largest online auction site, Auction (www.auction.co.kr), has been sold to the world`s largest auction portal site, eBay (www.ebay.com).

Auction and eBay held a joint news conference at the Westin Chosun Hotel in Seoul Monday to announce that they had signed an agreement under which eBay would purchase slightly more than 50 percent of Auction from its large shareholders. The shareholders include KTB Network, its President Kwon Sung-Mun and Will-Bes & Company. eBay will pay 24,000 won per share for a total of 150.5 billion won in cash.

Under the deal, eBay obtained managerial control of Auction but officials said that there would be no change in management, services or brands. eBay officials said they were impressed with the site`s existing management and shared the same vision.

Many analysts welcomed the purchase, which was the largest ever foreign capital injection in the domestic Internet industry, but others raised fears that it signaled the beginning of a foreign takeover of the online sales sector.