South Korea’s competition regulator has approved NS Shopping’s acquisition of the Homeplus Express business, clearing a key step for Harim Group’s return to the offline retail sector after 14 years.
The Fair Trade Commission approved the corporate combination on the 12th after reviewing potential competition concerns. NS Shopping, a subsidiary of Harim Group, signed a deal last month with Homeplus to acquire its Express convenience store unit for about $870 million, and subsequently filed for merger approval.
NS Shopping operates NS Home Shopping, a TV shopping channel, as well as an online retail platform. During its review, the regulator examined the broader Harim Group structure, which spans a vertically integrated food supply chain covering grain procurement, feed production, livestock farming, slaughtering, processing, and distribution.
The commission concluded that the deal was unlikely to significantly restrict competition in most markets, except for chicken products, which are Harim’s core business. Harim Group holds roughly 34% of South Korea’s domestic chicken market.
However, the regulator said competitive concerns in poultry were limited because Homeplus Express holds only about 2.1% of the domestic supermarket market, making any combined impact on the sector marginal.
The review was completed just 25 days after the merger filing was submitted. A Fair Trade Commission official said the process was expedited due to the financial situation of Homeplus, which is undergoing corporate rehabilitation proceedings.
With regulatory approval secured, Harim Group is set to re-enter the offline retail market for the first time in 14 years, expanding beyond its core poultry and food processing business into physical retail distribution.
