China Minsheng Investment may invest SK Planet

By Jhoo Dong-chan

An official at SK Planet has denied a rumor that the company is expected to clinch a 1.3 trillion won investment from China’s largest private investor, China Minsheng Investment (CMI).

According to The Korea Economic Daily, the domestic leading e-commerce platform and digital content provider is negotiating with CMI over the share ratio of its investment, which the SK Planet official denied.

“It is true that SK Planet has recently put efforts into attracting foreign investment, but nothing has been decided. CMI is just one possible investment partner,” the official told The Korea times.

“The investment figure of 1.3 trillion won is therefore groundless at this point as well.”

Established in Shanghai in August 2014, CMI was China’s first national-level private investment company. Endorsed by the State Council, China's cabinet, in April 2014, the company has a registered capital of 50 billion Chinese yuan ($8.1 billion), funded by 59 private Chinese companies.

CMI invested 180 billion won ($157 million) into Emerson Pacific, a Korean resort and hotel developer, in November 2015.

Along with Korea’s leading online market 11st.com, SK Planet also operates various online businesses, including points program OK Cashbag and mobile payment service Syrup Wallet. The company’s sales have grown 12.3 percent this year to 985 billion won, but it has yet to see an operating profit.

In 2013, SK Planet entered Turkish e-commerce market Dogus Planet under a joint venture with Turkey’s online commerce provider Dogus Group.

The site, n11.com, made 565.3 billion won ($485 million) in trading last year, giving it the top spot in Turkey's e-commerce market.

SK Planet has opened other online marketplaces in Southeast Asia ― Elevenia.co.id in Indonesia on March 2014 and 11street.my in Malaysia last April.