Yahoo pulling out of South Korea by year-end
- — 22 October, 2012 06:56
Yahoo plans to shut down its struggling business in South Korea by the end of this year to focus its resources, the company said on Friday.
The announcement comes ahead of Yahoo's quarterly earnings conference call on Monday when the company's new CEO, Marissa Mayer, is expected to give some indication on the revival plan for the Internet portal.
The Internet company has been struggling in South Korea against large local players such as NHN's Naver and Daum Communications.
Despite the efforts of a team set up in 1997 to offer content, services, and set up a search advertising network, the South Korean operation has faced growing challenges over the past few years that now make scaling the business very difficult, Yahoo said in a statement.
Its decision to shut operations in the country is part of its efforts to streamline operations and focus its resources on building a stronger global business that's set up for long-term growth and success, the company said.
Yahoo plans to continue to focus on other markets in the Asia Pacific (APAC) region where it operates. "We have a solid business in APAC and see a lot of opportunity for growth across our content properties, communications services and e-commerce sites," it said.
Besides a portal, Yahoo also runs the Overture search advertising network in South Korea.