|G-Market Inc. (GMKT) is a leading retail e-commerce marketplace in Korea (based on gross merchandise value sold). GMKT completed its IPO of 9.120 million American Depository Shares (ADS) at $15.25 per share on June 29, 2006.|
It offers buyers a wide selection of products at competitive prices and sellers a comprehensive and flexible sales solution. Its main competitor is Auction.co.kr, an auction-based website operated by a subsidiary of eBay Inc. (EBAY). The company derives its revenue primarily from transaction fees on the sale of products as well as from advertising fees. In mid-June 2006, Yahoo! Inc. (YHOO) purchased 4.5 million common shares of GMKT for US$60 million (approx 9.1% post IPO). It will use $20 million to upgrade and expand the network, another $20 million for marketing, and the rest for general corporate purposes and possible buyouts.
In the company’s latest reported first quarter ended March 31, 2006, sales increased to US$29.17 million from US$9.49 million or 207%. GMKT reported net income of US$2.0 million versus a marginal loss in the same period of 2005. South Korea's online shopping industry totals $11 billion.