Lotte Hi-Mart () is a South Korean retailer of electronic goods. It was originally a unit of bankrupt
Daewoo Electronics
Winia Electronics, formerly named Daewoo Electronics, is a South Korean home appliances company and a member of South Korean Winia Group. Established in 1971, it has since grown into a global business with more than 64 production sites, research ...
that founder Seon Jong-koo spun off in 1999. Hi-Mart is headquartered in
Seoul
Seoul (; ; ), officially known as the Seoul Special City, is the capital and largest metropolis of South Korea.Before 1972, Seoul was the ''de jure'' capital of the Democratic People's Republic of Korea (North Korea) as stated iArticle 103 ...
. Hi-mart was taken over by
Lotte Corporation
Lotte Corporation (or Lotte Group) is a South Korean multinational corporation, multinational conglomerate (company), conglomerate corporation, and the fifth-largest chaebol in South Korea. Lotte began its history on June 28, 1948, by Kore ...
on July 6, 2012.
History
Seon Jong-koo was formerly employed by Daewoo Electronics. When the company went bankrupt in 1999, he joined a spin-off company that became Hi-Mart.
In June 2008, South Korean chaebol
Eugene Group
Eugene Group is a large South Korean '' chaebol'' (conglomerate), producing industry, media, construction, and confectionery products that was founded in 1954. It also has subsidiaries that provide financial, IT, advertising, broadcasting, logisti ...
acquired 32.4% of Hi-Mart. in June 2010, the company went public.
In July 2012,
Lotte Corporation
Lotte Corporation (or Lotte Group) is a South Korean multinational corporation, multinational conglomerate (company), conglomerate corporation, and the fifth-largest chaebol in South Korea. Lotte began its history on June 28, 1948, by Kore ...
acquired a 65.3% of Hi-Mart for $1.1 billion. Hi-Mart operated 290 stores in Korea, controlling 35% of the market. The acquisition was maneuvered in the midst of a scandal about its founder and CEO, Seon Jong-koo, accused of embezzlement totaling $228 million.
In April 2012, one witness jumped out his apartment's window after being questioned by Korea's justice about bribing Seon Jong-koo. In December 2014, Seon Jong-koo was replaced by Lee Dong-woo.
He was the second largest shareholder of the company and heavily supported by Hi-Mart's employees.
In October 2012, the deal was OKed by the FTC and the company announced it is changing the stores' names to ''Lotte Hi-Mart''.
See also
*
Electronic commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
*
Online auction business model
An online auction (also electronic auction, e-auction, virtual auction, or eAuction) is an auction held over the internet and accessed by internet connected devices. Similar to in-person auctions, online auctions come in a variety of types, with d ...
*
Shopping mall
A shopping mall (or simply mall) is a North American term for a large indoor shopping center, usually anchored by department stores. The term "mall" originally meant a pedestrian promenade with shops along it (that is, the term was used to refe ...
External links
Hi-Mart Homepage
References
Companies based in Seoul
Online retailers of South Korea
Lotte Corporation subsidiaries
Companies listed on the Korea Exchange
{{retail-company-stub