US Internet company Yahoo has officially announced that it will be closing its South Korean operations by the end of the year. This will be part of the firm’s efforts to restructure its operations, as it tries to keep pace with global leader Google.
Yahoo Korea was founded in 1997 and is reported to have between 200 - 250 employees who were acknowledged in a statement by Yahoo. “Since 1997, our team in Korea has provided high-quality editorial content and services, and has built a successful search advertising network," the company wrote.
Yahoo went on to allude to its inability to best local competitors, such as NHN, Daum Communications and SK Communications, as the primary reason for pulling out of the Asian country saying, “The Korean operation has faced growing challenges over the past few years that now make scaling our business very difficult.”
The Internet mainstay's departure from the Asian market may not stop there, with TheNextWeb having reported back in January that Yahoo was in negotiations to sell its shares in Yahoo Japan. It has also sold its shares in ecommerce firm Alibaba back to the company for $7.6 billion (£4.7 billion).
However, the company went on to reaffirm its commitment to Asian markets.
“Yahoo! is committed to Asia. We have a solid business in APAC and see a lot of opportunity for growth across our content properties, communications services and ecommerce sites. We’ll continue to focus on building great experiences for the millions of people across the region who come to Yahoo! every day," the statement continued.