Wal-Mart Leaving South Korea

The world's largest retailer has decided to sell its interest in South Korea to the country's leading discount chain, Shinsegae Co. Wal-Mart Korea will receive about $882 million for 16 stores when approval is obtained from government regulators.

Since the launching of Wal-Mart Korea in 1998, its performance has been less than stellar. According to Mike Duke, vice-chairman of Wal-Mart, "It became increasingly clear that in South Korea's current environment it would be difficult for us to reach the scale we desired."

Wal-Mart is the second global retailer to abandon doing business in Korea in recent weeks. In late April, the French retail giant Carrefour sold its 32 South Korean stores to local fashion retailer E-Land.

Apparently, the current business climate in South Korea is not very friendly to foreign retailers.