Regulator greenlights E-Mart’s purchase of eBay Korea

The Fair Trade Commission believes the approval will spur competition in the retail sector.

South Korea's antitrust regulator Fair Trade Commission has approved a deal by Shinsegae Group’s discount store chain E-Mart to buy the Korean unit of US-based e-commerce giant eBay, Yonhap reportey.

The Fair Trade Commission said that the move, which is expected to close within this year, is not expected to hamper market competition, adding that the approval will help spur new competition in the retail sector.

In June, E-Mart signed a deal with eBay to acquire an 80% stake in eBay Korea for $2.9b (KRW3.44t). With the acquisition, E-Mart's parent and retail giant Shinsegae Group is expected to take on local e-commerce rivals such as Coupang.

EBay Korea took up the third spot in the country's online shopping market last year with a share of 12%. Internet giant Naver held the top spot with 17%, followed by Coupang with 13%.