Liquidation of Groupon Korea

 

The world’s largest social commerce firm reportedly decided to liquidate its Korea subsidiary Groupon Korea.

Groupon Korea said on March 4 it will be closed down no later than within the first half of this year, so that its parent company Groupon can focus on operating its newly-acquired, more successful Korean unit Ticket Monster.

The company plans to reduce its operation in Korea gradually and close down its website within the first half of this year along with completion of repayment and compensation related to the use of coupons or reserves.

Groupon’s move is aimed at providing its full support for Ticket Monster, locally known as TMON, to dominate Korea’s highly competitive daily deal market, it added.

Around 160 employees of Groupon Korea will leave the company under an early retirement program effective until the end of this month.

Groupon completed the procedure for its acquisition of TMON early this year, with the deal estimated at US$260 million, as the company tried to prop up its mobile commerce business in Asia as well as in Korea. TMON, one of the fastest growing online retailers in Korea, was bought by LivingSocial in 2011.

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