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Wal-Mart Exits South Korea for $882M

SOUTH KOREA-Shinsegae Co. agrees to purchase Wal-Mart Stores Inc.'s South Korean retail business for Won 825 billion ($882 million). The retailer will continue to operate Wal-Mart Korea's 16 stores but rename them E-Mart.

By Dana Dubriwny | Updated on May 22, 2006

(For more retail coverage, click GlobeSt.com/RETAIL.)

SOUTH KOREA-Locally based Shinsegae Co. has agreed to purchase Wal-Mart Stores Inc.’s South Korean retail business for Won 825 billion ($882 million). The retailer, which owns 79 E-Mart hypermarkets in the country, will continue to operate Wal-Mart Korea’s 16 stores but rename them E-Mart.

Saying the move was in the best interest of company shareholders and customers, Wal-Mart vice chairman Mike Duke admitted that “it became increasingly clear that in South Korea’s current environment it would be difficult for us to reach the scale we desired.” Wal-Mart launched its South Korean unit in 1998. Last year, the company reported a loss of Won 9.9 billion ($10 million) on sales of Won 750 billion ($787 million).

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