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Homeplus to leave?
« on: October 15, 2014, 08:20:44 pm »
http://m.koreaherald.com/view.php?ud=20141014001135

I guess I always suspected the Korean government would try and drive out anything foriegn owned.  They sure don't like their economy to have too much growth by regulating it too much.  Sucks if they do have to leave.

http://uk.reuters.com/article/2013/04/14/uk-korea-tesco-idUKBRE93D0CJ20130414


Re: Homeplus to leave?
« Reply #1 on: October 15, 2014, 08:56:39 pm »
http://m.koreaherald.com/view.php?ud=20141014001135

I guess I always suspected the Korean government would try and drive out anything foriegn owned.  They sure don't like their economy to have too much growth by regulating it too much.  Sucks if they do have to leave.

http://uk.reuters.com/article/2013/04/14/uk-korea-tesco-idUKBRE93D0CJ20130414

yeah. i really like homeplus, after costco that is.


Re: Homeplus to leave?
« Reply #2 on: October 15, 2014, 09:08:06 pm »
Just shows how dominating foreign products would be here if they are allowed free reign. They are so successful that the government wants to control them ;D. Imagine not having Home Plus and Costco in Korea..ugh..your options would be e-mart or lotte mart(both crap places). Koreans are scared of competition and always have to have things rigged in their favour. Put 'em on an even playing field and they wilt.


Re: Homeplus to leave?
« Reply #3 on: October 15, 2014, 09:52:16 pm »
Just shows how dominating foreign products would be here if they are allowed free reign. They are so successful that the government wants to control them ;D. Imagine not having Home Plus and Costco in Korea..ugh..your options would be e-mart or lotte mart(both crap places). Koreans are scared of competition and always have to have things rigged in their favour. Put 'em on an even playing field and they wilt.

absolutely. barriers to markets should be removed. the consumer wins. Except they wont wilt.  They will adapt. or die.





  • scholes
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    • May 12, 2011, 10:01:50 pm
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Re: Homeplus to leave?
« Reply #4 on: October 15, 2014, 10:11:13 pm »
And I just heard about homeplus selling real sausages and got some today.

Now Homeplus will be no more!

That sucks!!


Re: Homeplus to leave?
« Reply #5 on: October 16, 2014, 12:27:52 am »
Agh... I hope this is one of those things that will be "effective 2016" or something. Upon reading that story, I realised just how much of my typical grocery haul is either Tesco brand or only available because of the association with Tesco.

I'm wondering though, where did people get the idea that this is the government pulling the strings? I'm not saying I wouldn't believe it, but there's nothing in the article to indicate that at all. They cite declining profits, a data leak scandal, and poor worker morale. I didn't see anything even implying that the government was involved in this. If they said something about some dubious tax regulations and money leaving the economy, I'd say there could be a case for the government trumping things up, but according the article cited above, there does not appear to be any such goings on.

I'm asking not to be argumentative but because I genuinely don't know as would like to. Is there something else going on here?


  • qi
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Re: Homeplus to leave?
« Reply #6 on: October 16, 2014, 12:34:04 am »
Just shows how dominating foreign products would be here if they are allowed free reign. They are so successful that the government wants to control them ;D. Imagine not having Home Plus and Costco in Korea..ugh..your options would be e-mart or lotte mart(both crap places). Koreans are scared of competition and always have to have things rigged in their favour. Put 'em on an even playing field and they wilt.

How candid. Actually, they're (countries like China and Korea - Chorea) screwing you and your country, by benefitting from protectionism and globalism simultaneously. Your country is losing from both simultaneously because it has to play by the rules. 


  • Davey
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Re: Homeplus to leave?
« Reply #7 on: October 16, 2014, 01:49:53 am »
http://m.koreaherald.com/view.php?ud=20141014001135

I guess I always suspected the Korean government would try and drive out anything foriegn owned.  They sure don't like their economy to have too much growth by regulating it too much.  Sucks if they do have to leave.

http://uk.reuters.com/article/2013/04/14/uk-korea-tesco-idUKBRE93D0CJ20130414

The regulations apply to all big-box retailers and HomePlus'  woes more have to do with poor management (significant drop in margins before the regulations even took place) and selling of customer info.
« Last Edit: October 16, 2014, 03:15:50 am by Davey »
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Re: Homeplus to leave?
« Reply #8 on: October 16, 2014, 08:22:13 am »
http://m.koreaherald.com/view.php?ud=20141014001135

I guess I always suspected the Korean government would try and drive out anything foriegn owned.  They sure don't like their economy to have too much growth by regulating it too much.  Sucks if they do have to leave.

http://uk.reuters.com/article/2013/04/14/uk-korea-tesco-idUKBRE93D0CJ20130414

The regulations apply to all big-box retailers and HomePlus'  woes more have to do with poor management (significant drop in margins before the regulations even took place) and selling of customer info.

In Korea, if the bureacracy doesn't like you or someone complains about you, the powers that be will find some "dirt" on you.  Didn't you know that about the place?  They're called "non tariff barriers to entry".  It's a 3rd world mentality. 

Whether homplus did anything or not, I'm sure the Korean chaebols are much more innocent and never do anything wrong.  Of course they're Korean so it's ok. 


Re: Homeplus to leave?
« Reply #9 on: October 16, 2014, 08:27:24 am »
I will weep as HomePlus has a huge wine selection and at least mine has a really good selection of foreign foods.


  • Fanwarrior
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Re: Homeplus to leave?
« Reply #10 on: October 16, 2014, 08:52:58 am »
This is only speculation and nothing else. Maybe the guy is going to come in and clean house and turn things around. There is no one else in the game so liquidating all their assets here would cost them a lot, it may be cheaper to clean it up.


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Re: Homeplus to leave?
« Reply #11 on: October 16, 2014, 08:56:58 am »
I will weep as HomePlus has a huge wine selection and at least mine has a really good selection of foreign foods.

Oh my Gosh, This is the worst realisation out of everything.

The Tesco's Simply section had a deal on right now. The 10,000 wine are buy 3 for 2. I cannot recommend the cabernet sauvignon enough.


Re: Homeplus to leave?
« Reply #12 on: October 16, 2014, 09:03:13 am »
They just completed a full overhaul and renovation of my local HomePlus which included adding an entire prepared foods section, expanding the "foreign" section (which is still just salsa, tortilla, and more expensive tomato sauces - but hey, I like salsa), and building an entire Uniqlo and several other stores inside.  They added a Samsung store and even a convenience store in the lobby.  Putting a convenience store at the entrance of a grocery store probably isn't the most clever use of space considering the fact that every product for sale in the convenience store can be found just 20m away at a reduced price.

Anyway, it's hard to imagine them doing such large-scale expansion and renovation only to announce 3 months later that the company will abandon ship.  I feel like a major international corporation has a slightly longer vision when it comes to planning.  They would have looked at all kinds of data and projections before going ahead with the construction. 

Maybe I'm just hopeful.



Re: Homeplus to leave?
« Reply #13 on: October 16, 2014, 09:07:59 am »
the Korea Herald article says that Homeplus may leave, but the Reuters article says that Homeplus isn't leaving, just that Tesco is going to decrease its investment in the South Korean market:

Quote
Homeplus' Lee Seung-han said Tesco was not considering leaving, but acknowledged that regulation and market saturation have dimmed the prospect of new investment after entering the South Korean market in 1999.

considering the bad standard of reporting in most South Korean newspapers, I'm going to go with Reuters on this one, but who knows.


Re: Homeplus to leave?
« Reply #14 on: October 16, 2014, 10:14:22 am »
the Korea Herald article says that Homeplus may leave, but the Reuters article says that Homeplus isn't leaving, just that Tesco is going to decrease its investment in the South Korean market:

Quote
Homeplus' Lee Seung-han said Tesco was not considering leaving, but acknowledged that regulation and market saturation have dimmed the prospect of new investment after entering the South Korean market in 1999.

considering the bad standard of reporting in most South Korean newspapers, I'm going to go with Reuters on this one, but who knows.
 
Which is exactly what they should do.


Re: Homeplus to leave?
« Reply #15 on: October 16, 2014, 10:15:40 am »
Just shows how dominating foreign products would be here if they are allowed free reign. They are so successful that the government wants to control them ;D. Imagine not having Home Plus and Costco in Korea..ugh..your options would be e-mart or lotte mart(both crap places). Koreans are scared of competition and always have to have things rigged in their favour. Put 'em on an even playing field and they wilt.

How candid. Actually, they're (countries like China and Korea - Chorea) screwing you and your country, by benefitting from protectionism and globalism simultaneously. Your country is losing from both simultaneously because it has to play by the rules.

Oh, I know...I know. Which is why any country that signs an FTA with Korea gets what it deserves.


Re: Homeplus to leave?
« Reply #16 on: October 16, 2014, 11:24:14 am »
Take the Reuters article with a pinch of salt though - it's over a year old now. This one is more recent;

http://www.bbc.com/news/business-29328712


Re: Homeplus to leave?
« Reply #17 on: October 16, 2014, 11:34:55 am »

Oh, I know...I know. Which is why any country that signs an FTA with Korea gets what it deserves.

Yah... I think the meaning of "trade" is lost in translation.  It seems like most businesses here (and maybe the culture in general) are quite happy to benefit from certain elements of globalisation but resolutely opposed to others (i.e. actually having to live with foreigners among you :huh: ).  Happy to take money, but not if it means sacrificing the purity of their culture.  One need only look at what passes for "spaghetti sauce" in Korea to know how deeply they resist adaptation.   


Re: Homeplus to leave?
« Reply #18 on: October 16, 2014, 11:56:15 am »
How candid. Actually, they're (countries like China and Korea - Chorea) screwing you and your country, by benefitting from protectionism and globalism simultaneously. Your country is losing from both simultaneously because it has to play by the rules.

Oh, I know...I know. Which is why any country that signs an FTA with Korea gets what it deserves.
Your trains of thought are a little twisted.
FTA agreements will regulate the government, not stop it. When has Korea ever breached FTA terms and not went to court to decide the outcome?
They aren't so stupid to overlook these things, stopping unfair treatment is the whole purpose of an FTA. If there is a problem they will sue, but in this case it seems like Tesco seriously mucked up. Idoubt the media dreamed this up or Tesco's would probably sue them.
« Last Edit: October 16, 2014, 12:56:34 pm by sejongthefabulous »


Re: Homeplus to leave?
« Reply #19 on: October 16, 2014, 11:58:15 am »
I'm gonna miss the tesco shortcake biscuits. :cry:

Although last pack was totally smashed.