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Lotte Department Store Sogong-dong flagship store. (Photo courtesy of Lotte Shopping) |
[Alpha Biz= Kim Jisun] Korea’s leading secondhand trading platforms Junggonara and Bunjang are increasingly expected to be put up for sale, as large retail groups that previously invested in the platforms show signs of exiting.
According to industry sources, a consortium led by Lotte Shopping plans to initiate the sale of its stake in Junggonara in the second half of this year, as the investment fund formed for the acquisition approaches maturity. Lotte Shopping acquired a 93.9% stake in Junggonara in 2021 for approximately KRW 110 billion but abandoned its call option to secure management control last year, citing slowing growth and limited synergies.
While Lotte attempted initiatives such as convenience-store pickup services and online-to-offline integration, tangible results were limited, and cooperation is now largely confined to parcel delivery services via Seven-Eleven.
Bunjang is also reportedly preparing for a sale after selecting an advisor. The platform raised KRW 82 billion in 2022, with Shinsegae Group’s corporate venture capital arm Signite Partners participating as a new investor. Market observers view the move as part of a broader investor exit, as earlier collaborations with Shinsegae Group have not developed into sustained business initiatives.
Despite the potential divestments, Korea’s recommerce market continues to grow rapidly. According to Korea Internet & Security Agency, the domestic secondhand market is estimated to have expanded from KRW 26 trillion in 2023 to approximately KRW 43 trillion last year, underscoring continued investor interest in the sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
