SEOUL, South Korea (AP) — Yahoo Inc. 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 Inc. 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.
Yahoo Korea is wholly owned by its U.S. parent company.
Earlier on HuffPost:
South Korea has long boasted some of the world's fastest and most accessible Internet. <a href="http://news.cnet.com/2300-17938_105-10012951-5.html" target="_hplink">More than 94 percent of South Koreans</a> have high-speed connections. In addition, the South Korean government has pledged to give its citizens access to 1 Gigabit per second Internet by the end of this year -- or <a href="http://www.nytimes.com/2011/02/22/technology/22iht-broadband22.html" target="_hplink">more than 200 times faster than the average household in the United States</a>. "South Korean homes now have greater Internet access than we do," he said during his <a href="http://www.whitehouse.gov/state-of-the-union-2011" target="_hplink">2011 State of the Union address</a>.
In 2010, Finland became the first country in the world to make broadband access a <a href="http://www.huffingtonpost.com/2009/10/14/finland-broadband-access_n_320481.html" target="_hplink">legal right for all citizens</a>. That right: every one of the country's 5.3 million people will have guaranteed access to a high-speed Internet connection. Meanwhile, in the United States, about 19 million people have no access to high-speed Internet where they live. Finland isn't stopping there. It plans to make lightning-fast 100-megabit broadband service a legal right by the end of 2015.
Swedish broadband is twice as fast and costs one-third the price of broadband in the U.S., <a href="http://newamerica.net/publications/policy/price_of_the_pipe" target="_hplink">according to a study by the New America Foundation</a>. In 2007, a 75-year-old woman from central Sweden <a href="http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CDwQFjAD&url=http%3A%2F%2Fslashdot.org%2Fstory%2F07%2F07%2F12%2F1236231%2Fworlds-fastest-broadband-connection-40-gbps&ei=l3RGUOzxDMjn0QGY3YDwCw&usg=AFQjCNEwTvCABgII17xzH-oyvMmMRVf0VQ" target="_hplink">made headlines</a> when she was given the world's fastest internet connection. She could download a full high-definition DVD in just two seconds.
Japanese has some of the cheapest connections in the world,<a href="http://www.oecd.org/internet/broadbandandtelecom/oecdbroadbandportal.htm" target="_hplink"> according to the OECD</a>. Japan's government has offered companies generous tax incentives to invest in fiber-optic cables. "The Japanese think long-term," a technology consultant told <a href="http://www.nytimes.com/2007/10/03/business/worldbusiness/03broadband.html?pagewanted=print" target="_hplink">The New York Times in 2007</a>. "If they think they will benefit in 100 years, they will invest for their grandkids. There's a bit of national pride we don't see in the West."
"Consumer broadband prices in France are now among the most affordable in the world," <a href="http://cyber.law.harvard.edu/sites/cyber.law.harvard.edu/files/Berkman_Center_Broadband_Final_Report-Country_Overviews_15Feb2010.pdf" target="_hplink">according to a study</a> by Harvard's Berkman Center for Internet & Society. The study attributed the low prices to regulations that allow rival Internet providers to share access to broadband infrastructure. France is also one of several countries that have declared Internet access "<a href="http://www.foxnews.com/story/0,2933,525993,00.html" target="_hplink">a basic human right</a>."