Auction to Shut Down Secondhand Marketplace Service After 25 Years Auction’s secondhand marketplace, a service credited with helping shape South Korea’s online used-goods trade, will shut down after 25 years as mobile-first rivals dominate the market. According to the industry on Wednesday, Auction will end both the used-goods section on its website and its used-goods marketplace app starting March 31. New item listings in the app will stop first, on Feb. 26. An Auction official said the company decided to close the service to reassign staff and resources to “more efficient services.” The used-goods marketplace was closely tied to Auction’s origins. The company launched in 1998 as South Korea’s first auction-focused site, introducing a model in which individuals sold used items through open bidding. Auction opened the used-goods marketplace section in 2001. The service was also seen as helping standardize escrow-style payments — releasing funds only after a buyer confirms a purchase — as a way to reduce fraud that was common in community-based trading forums such as Joonggonara. Listings ranged from rare collectibles to home appliances and clothing, drawing sellers and buyers nationwide. Auction introduced an app in 2013. Auction’s position weakened in the late 2010s as mobile-optimized platforms such as Karrot, which is built around local neighborhoods, and Bunjang, which targets interest-based trading, gained ground. Users moved to specialized apps offering simple chat functions and GPS-based in-person transactions. Data from app and retail analytics service Wiseapp Retail showed that last month the number of unique users on major secondhand platforms was 23.4 million for Karrot, 4.73 million for Bunjang and 1.95 million for Joonggonara. Over the same period, app usage rates — the share of installers who actually used the app — were 69% for Karrot, 39% for Bunjang and 27% for Joonggonara. Wiseapp Retail said Auction’s used-goods marketplace was not included because its user base was not large. Industry observers said the shutdown reflects a push by Shinsegae Group’s e-commerce unit, which operates Gmarket and Auction, to improve efficiency. One industry official said a general e-commerce platform’s secondhand section can be less efficient in a market dominated by specialized apps, calling the move a strategic choice to drop inefficient services and focus on core open-market competitiveness.* This article has been translated by AI. 2026-01-29 08:58:05

Foreign shoppers make cash registers ring at department stores amid weak won SEOUL, January 23 (AJP) - Amid concerns over soaring consumer prices due to the weaking won against the greenback, South Korea has become a destination for luxury goods among many overseas shoppers. Foreign tourists have been lining up outside department stores in central Seoul even before they open for days' business. According to industry data released on Friday, foreign sales at Shinsegae's main branch in downtown Seoul jumped 82 percent last year, while its Gangnam branch saw a 52 percent increase. Sales at Lotte and Hyundai department stores also showed a similar trend, as purchases of luxury goods by foreign shoppers are rising fastest. In particular, foreign sales at Hyundai accounted for about 20 percent of its total sales. The main draw is price. With the weakening won, luxury goods in South Korea are nearly 10 percent cheaper for foreigners, and tax refunds for tourists can reduce prices even further. To capitalize on the trend, department stores are stepping up efforts to attract more overseas shoppers. Hyundai is preparing a tailored shopping program for foreign travelers, picking them up at Incheon International Airport upon arrival, while Shinsegae plans to expand promotions targeting short-term visitors and cruise passengers in the southern port city of Busan. Lotte introduced a foreigner-only membership credit card in December, offering a 5-percent discount and other benefits. Around 13,000 people have already signed up in just a month. Department stores anticipate strong sales as foreign arrivals are on the rise. According to the Korea Tourism Organization, some 17.42 million foreign tourists visited South Korea during the first 11 months of last year, up 15.4 percent from 15.10 million a year earlier. With December's figure included, the total is expected to surpass the previous record of 17.50 million set in 2019. "Foreign spending has become a key factor in ringing department store registers," an industry insider said. 2026-01-23 17:32:28

Lotte chair calls for quality-growth pivot as petrochemicals and retail falter SEOUL, January 16 (AJP)-Lotte Group Chairman Shin Dong-bin on Thursday called for a decisive shift toward “quality growth” centered on profitability and efficiency, as the South Korean conglomerate’s flagship petrochemicals and retail businesses both posted weak performance last year, underscoring mounting pressure on the group’s traditional growth engines. The message came at Lotte’s first Value Creation Meeting (VCM) since a sweeping leadership overhaul late last year, with the C-suite gathering taking place against the backdrop of deteriorating business conditions across key affiliates and coinciding with the sixth anniversary of the death of founder Shin Kyuk-ho. The meeting, held at Lotte World Tower in Seoul, brought together Shin and about 80 CEOs and senior executives from the holding company and major affiliates. It marked the group’s first top-level strategy session following what Lotte described as its largest-ever generational reset, as the conglomerate confronts rising uncertainty at home and abroad. The VCM is held twice a year to align affiliates around the group’s mid- to long-term strategy. This year’s first-half meeting unfolded in a notably somber atmosphere, reflecting concerns over slowing growth and structural imbalances within Lotte’s business portfolio. Shin warned that the group’s recent growth momentum has weakened and said this year’s business environment is unlikely to be favorable. Strengthening fundamental competitiveness, he said, must take precedence if Lotte is to overcome headwinds and return to sustainable growth. The sense of urgency was reinforced by the group’s recent financial performance. Lotte’s two core pillars — chemicals and retail — both struggled last year, eroding the “twin-engine” model that has long underpinned the conglomerate’s earnings. According to estimates by financial data provider FnGuide, Lotte Chemical is projected to have posted an operating loss of 719.4 billion won ($520 million) last year amid prolonged weakness in the global petrochemical cycle. Lotte Wellfood’s operating profit is estimated to have declined 11.64 percent from a year earlier to 138.8 billion won, reflecting rising costs and slowing demand. Lotte Shopping was seen as a relative bright spot, supported by solid department store performance, though overall retail conditions remained challenging. In November, Lotte moved to reset its leadership structure, replacing around 20 affiliate CEOs in its regular 2026 executive reshuffle. All existing vice chairmen stepped back from frontline management roles, and the group abolished its business headquarters system introduced in 2022, shifting greater accountability and decision-making authority to individual affiliates. Reflecting the tense environment, most executives declined to comment to reporters as they entered the venue, though a few offered brief remarks. Lee Won-taek, CEO of Lotte GRS, said only that the company would “strengthen food tech” when asked about its artificial intelligence strategy, declining to elaborate on management priorities for the year. Lotte GRS, which operates Lotteria, has been accelerating kitchen automation and digital transformation since 2024, introducing cooking robots such as Alpha Grill and Boglebot. Kim Jong-yeol, CEO of Lotte Cultureworks, said the company would “read trends and lead the world in advance.” Lotte Cultureworks is pursuing a merger with Megabox JoongAng and is shifting its focus from theater operations toward content investment and distribution. During the closed-door session, executives held in-depth discussions on rebalancing strategies by business line to restore competitiveness. For food, the agenda included raising the value of core brands. In retail, executives discussed tailoring store strategies to specific commercial districts to maximize customer satisfaction. In chemicals, the focus was on swift restructuring aligned with government policy and upgrading the portfolio around specialty, high value-added products. Participants also discussed strengthening groupwide risk management to prevent information-security breaches and safety incidents before they occur. Shin laid out management principles he said must underpin the turnaround: a shift to profitability-based management, faster and more proactive decision-making, and vigilance against complacency rooted in past success. He urged executives to adopt return on invested capital (ROIC) as a core benchmark, stressing efficient investment and sustainable profitability over sales-driven expansion. All investments, he said, should be guided by clear principles and continuously reviewed for feasibility, including projects already underway. Following governance changes, Shin also called for quicker decision-making at the affiliate level. He asked CEOs to balance mid- to long-term vision with immediate operational challenges while fostering a culture in which employees can innovate and grow autonomously. Shin warned against the arrogance of believing the group is immune to structural change. “Innovation means continuously improving products and services to meet customer needs,” he said. “Small, customer-centered innovations can come together to create big innovation. Leaders must think seriously about what it takes to understand customers and resolve their inconveniences.” In closing, Shin delivered a blunt message. “If we do not change by breaking away from what is familiar, we cannot solve the problems we are facing now,” he said. “We must move quickly to innovate and strengthen our fundamental competitiveness by moving beyond past ways of succeeding.” Earlier in the day, Lotte held a memorial ceremony marking the sixth anniversary of the death of founder Shin Kyuk-ho. Attendees included Shin; his eldest son, Shin Yoo-yeol, vice president of Lotte Holdings and CEO of Lotte Biologics; and Lotte Holdings co-CEOs Ko Jung-wook and Noh Joon-hyung. * This article, published by Aju Business Daily, was edited by AJP. 2026-01-16 07:38:51

Korea's No.2 retailer Shinsegae loses data on 80,000 employees and subcontractors SEOUL, December 26 (AJP) -Shinsegae Group has become another South Korean major retailer to report data breach involving 80,000 employees and workers at partner companies, although no customer data was compromised. Shinsegae I&C, the group’s information technology arm, said Friday it had detected signs of unauthorized access to its internal intranet and confirmed that employee-related data had been leaked. The exposed information includes corporate ID numbers, names, departmental affiliations and IP addresses of Shinsegae Group employees as well as staff working for subcontractors, the company said. “No customer information was leaked,” Shinsegae I&C said in a statement. The company said it first detected the breach on Wednesday and reported the incident to the Korea Internet & Security Agency on Friday afternoon. Upon discovery, it conducted an emergency inspection, blocked affected systems and accounts, and took protective measures to prevent further damage. A malware infection is suspected to be behind the breach, although the exact cause has yet to be determined, according to the company. “We are currently investigating the precise cause and the full scope of the incident,” a Shinsegae official said, adding that the firm will actively cooperate with authorities. In an internal notice, Shinsegae I&C advised employees to immediately change their work-system passwords and remain vigilant against suspicious emails or phishing attempts. The company also said it plans to strengthen its security management systems to prevent a recurrence. Shinsegae Group is one of South Korea’s largest retail conglomerates, operating department stores, duty-free shops, the E-Mart discount chain and the Starbucks franchise in Korea. Its department store unit ranked second nationwide in 2024, operating 13 outlets and posting sales of 12.3 trillion won, accounting for 31.3 percent of the market. The incident comes amid heightened scrutiny over data security, following a major breach at e-commerce giant Coupang that exposed personal information of nearly 34 million customers and remains under investigation. 2025-12-26 21:17:49

China Duty-Free Group emerges as key contender in Incheon airport duty-free bid SEOUL, December 12 (AJP) - China Duty-Free Group (CDFG), the world’s largest duty-free operator, is emerging as a major contender in the re-bidding of duty-free concessions at Incheon International Airport, setting the stage for heightened competition with South Korean rivals Lotte, Hyundai, Shilla and Shinsegae. A Dec. 18 bidder briefing is expected to confirm participation. Incheon Airport Corporation on Thursday reopened the tender for operators of the DF1 zone — covering perfume and cosmetics — and the DF2 zone, which includes liquor, tobacco, perfume and cosmetics. The licenses were returned by Shilla Duty Free and Shinsegae Duty Free, which won them in 2023 but later withdrew after incurring heavy losses. Their request for a 40 percent rent reduction was rejected by the airport, leaving each with penalties of around 190 billion won. Shilla will continue operations until March 16 and Shinsegae until April 27, after which new operators will take over. Contracts will run through June 30, 2033, with an option for up to 10 years of renewal. Lotte Duty Free and Hyundai Department Store have formed internal task forces to prepare bids, while Shilla and Shinsegae are cautiously reviewing the commercial terms before deciding whether to re-enter the competition. But industry attention is increasingly fixed on CDFG, whose participation in the previous tender round pushed bid prices sharply higher. The Chinese state-owned operator posted a net profit of 3 billion yuan (about 622 billion won) in the first three quarters of this year, reinforcing expectations it could submit an aggressive offer. Despite rising inbound travel, duty-free operators are navigating shifts in consumer behavior as foreign tourists increasingly shop at domestic retail chains such as Olive Young and Daiso. Analyst Yoo Jung-hyun noted that “shopping preferences are moving away from airport duty-free stores toward local specialty retailers.” Bids are due on Jan. 20, with clarity on the final field expected at the Dec. 18 briefing. An industry insider warned that overly aggressive bids could trigger a “winner’s curse,” urging companies to calculate break-even points carefully before committing. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 15:36:31

Korean big-box retailers shrink under decade-old regulations SEOUL, December 08 (AJP) - South Korea’s largest hypermarket chains are steadily losing ground as long-standing regulatory constraints undermine their competitiveness while e-commerce and less-regulated rivals expand, industry data show. The total number of outlets operated by major chains — including E-Mart, Lotte Mart and Homeplus — fell 7.5 percent to 392 this year from 424 in 2017. E-Mart reduced its store count from 159 to 157, Lotte Mart from 123 to 112, and Homeplus from 142 to 123. The contraction has been accompanied by declining revenues. Combined annual sales at the three chains fell below 30 trillion won last year, down about 3.3 trillion won from a decade earlier, according to industry estimates. Industry officials attribute much of the pressure to the industry regulatory framework, introduced in 2012 to protect traditional markets and small merchants. The law mandates two monthly shutdown days, bans operations between midnight and 10 a.m., and restricts new store openings within a one-kilometer radius of traditional markets. It also prohibits online deliveries by large retailers during restricted hours, effectively excluding them from the rapidly expanding early-morning delivery market. By contrast, e-commerce platforms such as Coupang have expanded rapidly, while brick-and-mortar formats exempt from the rules have gained market share. Last month, the National Assembly extended the law’s sunset clause to Nov. 23, 2029, effectively locking in the current regulatory framework. Policy experts and industry groups say the rules no longer serve their original purpose. A report by the Korea Institute for Industrial Economics and Trade found little evidence that mandatory holiday closures revive traditional markets and said the law is rooted in an outdated, offline-centric view of retail that fails to match current consumer behavior. “Applying rigid, decades-old rules only to hypermarkets is increasingly disconnected from market realities where online and offline channels have converged,” an industry official said. “The framework for coexistence with traditional markets needs to be redesigned to restore competitiveness.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-08 17:32:23

Korean lawmakers advance bill to close loopholes on synthetic nicotine SEOUL, November 28 (AJP) - South Korea is moving closer to regulating synthetic nicotine as tobacco after a key parliamentary committee approved an amendment to the related act, paving the way for a full legislative vote on Dec. 12. The amendment would broaden the legal definition of tobacco to include products containing nicotine derived from non-tobacco sources. Synthetic nicotine e-cigarettes are currently treated as industrial products, allowing them to bypass tobacco-related regulations such as online sales bans and restrictions on vending machine distribution. Health officials and lawmakers have warned that the loophole has contributed to rising youth smoking rates. To curb stockpiling ahead of the new rules, the bill shortens the implementation period from six months to four and mandates clearer labeling of manufacturing and import dates. Authorities also plan to inspect existing inventories for harmful substances before they can be sold, while coordinating with local governments to prevent excessive pre-enactment buying. The amendment grants a two-year grace period for e-cigarette retailers to comply with regulations governing tobacco outlets. Online sales of synthetic nicotine products would end four months after the law takes effect. South Korea began discussing synthetic nicotine regulation in 2016, but progress stalled amid industry pushback. The latest proposal, initially delayed for further review, passed the legislative committee on Nov. 26. The e-cigarette industry cautiously welcomed the development. Kim Do-hwan, vice president of the Korea Electronic Cigarette Association, said: “Though delayed, we welcome the decision. However, the two-year grace period for vending machine sales is disappointing.” Still, some industry voices argue that taxing synthetic nicotine at the same rate as traditional tobacco is excessive. Natural nicotine e-liquids are currently taxed at 1,799 won per milliliter; applying the same rate to synthetic nicotine would add roughly 54,000 won in taxes to a 30-milliliter bottle. “The cost and production structure of synthetic nicotine differ from traditional tobacco, so applying the same tax rate burdens small businesses,” an industry source said. “Reasonable adjustments in the detailed regulations are necessary.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-28 14:13:00

AI firm among two bidders seeking to acquire Homeplus SEOUL, October 31 (AJP) - An artificial intelligence company has joined the bid to acquire Homeplus, the troubled South Korean retail chain now under court-led rehabilitation. Homeplus said Friday that multiple bidders had submitted letters of intent by the deadline. While Homeplus did not reveal details of the participants, one bidder is reportedly Harex InfoTech, an AI solutions firm. The AI firm reportedly plans to raise about $2 billion in the United States to finance the acquisition. Under the current sale plan, all common shares held by majority shareholder MBK Partners would be canceled, except for preferred shares, and new shares issued to the successful bidder. In 2015, MBK Partners, a private equity firm, acquired a 100 percent stake from British supermarket chain Tesco Plc for 7.2 trillion won (about $5.2 billion at the time). But a prolonged slump in the discount store industry, compounded by competition from online platforms, left the company financially distressed. It eventually entered court-led rehabilitation proceedings in March. Samil PwC, the lead manager for the open bidding process, said it will review the letters of intent and financing plans before signing non-disclosure agreements with the qualified bidders. The due diligence will run from Nov. 3 to 21, with final bids due by Nov. 26. The identity of the second bidder remains undisclosed. NongHyup, previously mentioned as a potential participant, did not submit a letter of intent. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-31 17:09:41

CJ Logistics expands US cold chain network with new Kansas hub SEOUL, September 28 (AJP) - South Korea's CJ Logistics said Sunday it has opened a new cold chain logistics center in New Century, Kansas. The facility is specifically designed to manage the storage and transport of refrigerated and frozen goods, utilizing specialized temperature control systems to maintain product freshness and quality. The new center's proximity to major highways allows for fast, same-day transport to key Midwestern cities, the company said. The facility boasts a direct connection to the BNSF railway, which links the western and central United States. Furthermore, the nearby CPKC railway provides access for continental transport across North America, connecting Canada, the U.S., and Mexico. This multimodal capability allows the center to reach an estimated 85 percent of the U.S. within two days. The Kansas center opening follows the launch of a 24,904-square-meter cold chain center in Gainesville, Georgia, a key frozen poultry production area, which opened last year. Kevin Coleman, CEO of CJ Logistics America, emphasized the importance of the expansion. "High-value cold chain logistics require stringent temperature control and quality maintenance, demanding expertise and trust," he stated. "We aim to strengthen our North American cold chain supply network with advanced technology." CJ Logistics America currently operates over 70 logistics centers across 17 states, including Illinois, California, and Georgia, offering comprehensive logistics services such as warehouse management, transport management, and consulting. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-28 15:11:12

Emart24 becomes first Korean convenience store in Laos SEOUL, September 28 (AJP) - South Korean convenience store chain Emart24 announced its entry into the Laotian market, Sunday, becoming the first Korean convenience store brand to establish a presence in the country. The entry follows a strategic franchise agreement with Laos-based conglomerate, Kolao Group. The partnership will see Emart24 convert 50 existing KOK KOK MINI convenience stores, currently operated by Kolao Group, into Emart24 outlets, alongside the opening of new locations. Kolao Group, founded by Oh Se-young in 1997, is a diversified conglomerate with interests spanning from car assembly and sales to finance, platforms, construction, and leisure. Since 2023, the group has also operated hypermarkets and convenience stores under its proprietary KOK KOK brand. Emart24 currently operates seven stores in Cambodia, 102 in Malaysia, and one in India. Emart24 is positioning its new Laotian stores to capitalize on the country's youth demographic, who are demonstrating a growing affinity for Korean culture, including K-food, K-content, and K-beauty. Emart24 CEO Choi Jin-il, said, "We anticipate this expansion will not only boost exports of our private label products but also open new markets for South Korean small and medium-sized businesses." * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-28 15:02:04