Investors in 11Street Co., an e-commerce unit of Korea’s No.2 conglomerate SK Group, have difficulties with exiting from the online shopping platform, banking industry sources said on Monday.11 Street’s parent SK Square Co.sold an 18.18% stake in the e-commerce platform for 500 billion won ($366.1 million) to National Pension Service (NPS) and other financial investors in 2018, under conditions of a 3.5% guaranteed rate of return per year and the company’s initial public offering within five years.
Despite grocery delivery platform Oasis Corp.'s intention to buy 11Street, it is unclear whether the 11Street’s financial investors would sign a deal as the liquidity crisis of TMON and WeMakePrice, Southeast Asia-based e-commerce platform Qoo10 Pte.’s Korean units, have significantly hit domestic online shopping operators’ valuations.“Previously, increasing transaction volumes was enough to attract huge investments for online marketplaces.
South Korean online marketplace operators struggle to attract investors amid deteriorating profitability and the ongoing impact of the financial turmoil of domestic e-commerce platforms TMON Inc.and WeMakePrice.
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