Wal-Mart Leaves Korea

The world’s biggest retailer, Wal-Mart, has finally decided to withdraw from the Korean market since it made inroads into the country eight years ago.

The 16 outlets of Wal-Mart, the fifth largest retailer in Korea, were acquired by Shinsegae Department Store.

As Wal-Mart pulls out of Korea, following Carrefour, a French discount chain, the only foreign-based retailer in Korea is now Samsung Tesco Home Plus of Tesco, headquartered in Britain.

Shinsegae and Wal-Mart Korea held a press conference at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul, on May 22, and announced, “Shinsegae has signed a contract to take over 100 percent of Wal-Mart Korea’s share for 825 billion won.”

Shinsegae will run the Wal-Mart outlets with a separate corporation system with its department store chains for the time being, but it will change the name of all the outlets to E-Mart, its own discount chain.

“The company made the decision as we didn’t think our outlets in Korea would be among the top three in the Korean market within four or five years,” said a senior vice-president of Wal-Mart. “Although Wal-Mart Korea is withdrawing, its purchase department will stay.”

Jae-Seong Hwang jsonhng@donga.com