Yahoo! says bye after failing to put dent in local marketYahoo! announced yesterday that it will shut down its business in Korea at the end of this year.
The Web portal said people trying to access its Korean site will subsequently be redirected to the U.S. site.
“Our business in Korea has faced a number of challenges in recent years,” the local unit said in a statement. “Yahoo has decided to wrap up its business here to seek further success by focusing on its global business.”
The exit comes as no huge surprise given the company’s struggle to make a sizeable dent in Korea’s Web portal market.
According to a report in August, Naver and Daum, two local service providers, dominate the market with respective shares of 76 percent and 14 percent. Yahoo only managed to wrestle 0.2 percent for itself.
The declining fortunes of Overture Korea, an affiliate of Yahoo! Korea, also seem to have played a significant role in the latter’s departure. Its attempt to win advertisers over with its pay-per-click service seems to have fallen short as Overture Korea failed to extend its contract with Naver and Daum, creating a revenue shortage.
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