Wal-Mart sells S. Korean stores for $872M

SEOUL, May 22 (UPI) -- Wal-Mart Stores Inc. sold its 16 South Korean stores Monday to domestic market leader Shinsegae for $872 million.

Shinsegae's discount chain E-Mart will absorb all 16 Wal-Mart stores, the Korea Times reported.

Wal-Mart's move followed its failure to reach expected growth targets in South Korea.

"As we continue to focus our efforts where we can have the greatest impact on our growth strategy, it became increasingly clear that in South Korea's current environment it would be difficult for us to reach the scale we desired," said Mike Duke, vice-chairman of Wal-Mart.

The world's biggest discounter becomes the second global retail giant to leave South Korea in 2006, the Financial Times said. In April, Carrefour sold its Korean operations to E.Land, a domestic retailer for about $2 billion.

Carrefour and Wal-Mart found competing against Shinsegae's E-Mart and Lotte Shopping's Lotte Mart in the $120 billion market difficult, as Korean consumers avoided warehouse-style stores common in the West.