Yahoo shuttering portal, advertising service in South Korea

Yahoo said it will close its South Korean web portal and an internet advertising business, cutting its losses in a market where it has struggled for over a decade. Yahoo’s South Korea unit said Friday its Seoul office with over 200 employees will be shut by the end of this year. The decision comes after […]

Yahoo said it will close its South Korean web portal and an internet advertising business, cutting its losses in a market where it has struggled for over a decade.

Yahoo’s South Korea unit said Friday its Seoul office with over 200 employees will be shut by the end of this year. The decision comes after former Google executive Marissa Mayer took the helm at the struggling U.S. internet company in July.

The closure of the Korean arm is part of efforts to “create a stronger global business by realigning resources,” Yahoo Korea said in a statement.

Since entering South Korea in 1997, Yahoo has operated a namesake portal in Korean and an internet advertising company, Overture Korea.

Yahoo’s South Korean market share has become negligible in recent years as users flocked to Naver, Daum and other portals operated by South Korean Internet firms.

Yahoo Korea was also hurt by the rapid adoption of smartphones and the mobile internet, which made it more difficult to attract advertisers to web portals designed for desktop computers. Overture Korea added to problems by failing to renew key advertising deals.

Yahoo has been struggling against competition from Google and Facebook, failing to lift its advertising revenues even though companies increased their online marketing budgets. Yahoo replaced two CEOs in a year.

A Yahoo Korea official said Yahoo doesn’t plan to close other overseas businesses.

The Sunnyvale, Calif.-based company is scheduled to release its third-quarter earnings on Monday.

Media Articles

As Prime Minister, Kellie Leitch would scrap CBC

Tory leadership hopefuls are outlining their views on national broadcaster's future

‘Your Morning’ embarks on first travel partnership

Sponsored giveaway supported by social posts directed at female-skewing audience

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Netflix debates contributions with Canadian Heritage

Netflix remains wary of regulation as some tout 'Anne' and 'Alias Grace' partnerships

Canadians warm up to social commerce

PayPal and Ipsos research shows "Shop Now" buttons are gaining traction

Online ad exchange AppNexus cuts off Breitbart

Popular online ad exchange bans site for violating hate speech policy

Robert Jenkyn is back at Media Experts

Former Microsoft and Globe and Mail exec returns to the agency world

2016 Media Innovation Awards: The complete winners list

All the winning agencies from media's biggest night out!

A CEO’s tips for using DIY video in consumer marketing (Column)

Vidyard's Michael Litt argues against outdated 'text tunnel vision'