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

Social Scanner: Social gets serious about shopping

Three big social networks make moves in ecommerce, plus Vine gains traction and Target partners with popular YouTubers

Vancouver homeless campaign generates buzz worldwide

Convertible bus benches seen as antidote to anti-homeless doorway spikes

CRTC fines four companies for telemarketing violations

CRTC imposes penalties for calls made to consumers on Do Not Call List

CRTC to meet with telecom/cable industry over paper bill fees

Fact-finding study finds “wide variance” on how such fees are approached

Sponsored content relies on, among other factors, storytelling, site credibility: IAB

New study outlines consumer attitudes towards native advertising

Alan Cross goes back to The Edge

New role will see the resurrection of The Ongoing History of New Music at the Corus-owned station which hopes to lure back lapsed listeners

Netflix turns its eye to international expansion

Streaming video company will also continue its aggressive pursuit of original content

Elvis spotted around GTA in new campaign

It’s viva… Blue Mountain, as celebration of all things Elvis marks 20th anniversary

Bell Media refreshes The Loop, promotes sharing

Revamp comes less than two years after rebrand of the former Sympatico