Yahoo to shutter South Korea business at the end of the year
The company says that the move is part of its "efforts to streamline operations."
Yahoo has decided to leave the South Korea market as it tries to reestablish itself around the world as a powerful Web company.
Yahoo announced its plans yesterday, saying that it will shutter its South Korea operation at the end of the year. The company didn't provide too many details on its departure, but indicated that the move is a response to "efforts to streamline operations and focus our resources on building a stronger global business that's set up for long-term growth and success."
The South Korea unit has been in operation since 1997. Yahoo's team, which consists of about 200 employees, delivers editorial content and handles the company's advertising efforts in that country. Yahoo's market share in South Korea has been on the decline as users increasingly used competing Web portals, like Naver and Daum.
"The Korean operation has faced growing challenges over the past few years that now make scaling our business very difficult," Yahoo said yesterday in a statement.
Yahoo is in the midst of a major shift. The company's new CEO Marissa Mayer is reportedly working on major changes across the operation and she has brought in a host of new executives to help her do just that. Earlier this week, Yahoo announced that Mayer had hired Henrique De Castro as its new chief operating officer. He previously worked at Google.
Yahoo said in the statement that it has no plans to leave any other parts of Asia at the moment, and believes it has "a solid business in Asia-Pacific."