11st.com parent, Korea’s SK Planet, has sold its stake in it Indonesian joint venture in the first of what could be a series of deals exiting foreign markets, according to Korean news reports.
SK Planet, a subsidiary of SK Telecom, is in the process of negotiating a domestic e-commerce partnership with retail giant Lotte after SK PLanet ran up a loss of 200 billion won (US$177 million) last year.
According to Pulse News of Korea, talks have hit a snag over disagreement in the shareholding structure of the JV.
In the meantime, SK Planet has sold its 50 per cent stake in Indonesia’s Elevenia online marketplace to local conglomerate Salim Group, which has a partnership with Lotte to operate a separate e-commerce business.
The other 50 per cent stake is owned by telco PT XL Axiata.
However, while Elevenia has grown quickly to become Indonesia’s third largest online mall, it has failed to turn a profit after three years.
“SK Planet decided it was best to close down money-losing operations overseas to focus on propping up the domestic business. After Indonesia, the next to go could be Malaysia among the three overseas markets including Thailand and Turkey,” wrote Pulse News..
SK Planet operates under the 11street brand in Malaysia and Thailand.