[THE INVESTOR] SK Planet, operator of the nation’s top online open market 11st, is considering selling its stake in an Indonesian joint venture aiming to exit the highly-competitive market, according to news reports on Aug. 23.
SK Planet set up a 50:50 joint venture Elevenia with Indonesia’s telecom operator XL Axiata in 2014. The Korean firm invested about 50 billion won (US$44.21 million) at the time.
Reports said the Indonesian retail giant Salim Group is considering acquiring Elevenia in its latest push to enter the online shopping market.
Currently, Elevenia is one of the top three e-commerce firms in the market but its profits have continued to decline as it has not followed its rivals in offering steep discounts.
“We are considering diverse options to restore profits in the market,” an SK Planet spokesperson told The Investor, while denying the exit rumors.
The firm currently operates in three overseas countries -- Malaysia, Turkey and Thailand -- apart from Korea. Sources say it is also likely to exit the Malaysian market where it is losing money.
