Starbucks plans to sell its stakes in South Korea to local partners
Starbucks’ marketing strategy is influenced by the fast growing international markets outside South Korea.
E-Mart, one of the largest retailers in South Korea with over 160 stores and the owner of half of the JV, will buy an additional 17.5-percent stake in Starbucks Coffee Korea for $411 million, according to its filing on Tuesday. GIC will own the remaining 32.5 percent.
"Part of our success in South Korea -- and in many of our international markets -- is due to our expertise and judgment in knowing when to rely on local partners to continue to build the business," Michael Conway, Starbucks' group president for international and channel development, said in a statement.
E-Mart and its parent Shinsegae Group have leveraged a pandemic-led disruption in the Asian e-commerce industry to buy up some businesses, including eBay's South Korean unit for $3 billion.
A Shinsegae spokesperson said Starbucks Coffee Korea will continue to be in a licensing agreement with Starbucks, as it has been when it was a JV between Starbucks and Shinsegae Group.