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

Porter Airlines fined over anti-spam compliance

$150,000 for allegedly leaving "unsubscribe" off commercial emails

Inside Facebook: Shifts in marketing and mobile strategy

Is Facebook even a social media company anymore?

The AOL Sessions – The viewability lightning rod

The value of viewability vs. attribution

Ukrainians clamour for Canadian TV in media conflict

As the plug gets pulled on Russian shows, content needed to fill the airwaves

Maple Leafs bring on the beacons for fan event

MLSE planning further experiments with tech partner Rover Labs

David Jowett named president of DAC Group, Europe

Former Vision7 leader will spearhead the agency's growth in Europe

Judy Davey takes over for Bob Reaume at ACA

Davey joins in dual role as VP of media policy and marketing capabilities

Bringing some Cannes Do to ad fears

Contemplating an ad-blocked media landscape

Cannes 2015: Groceries Not Guns wins gold in Radio

Grey Germany's Berlin Wall of Sound takes the Grand Prix