SEOUL, Jul. 22 (Korea Bizwire) — GS Home Shopping Inc., the retail affiliate of South Korean business group GS, is set to enter the Russian home shopping market by joining forces with state-run telecommunications firm Rostelecom PJSC, the two companies said Wednesday.
GS Home Shopping Chief Executive Officer Huh Tae-soo and Rostelecom President Sergey Kalugin inked a deal Tuesday to invest US$20 million to establish Big Universal Mall Channel, the two companies said in a press release.
Under the agreement, Rostelecom will invest $12 million, while GS Home Shopping will be investing $8 million to create and operate the home shopping channel, which is scheduled to go on air next year.
“Russia is a difficult market. We will strive to deliver more opportunities for small and medium enterprises based in South Korea,” said Huh.
GS Home Shopping currently runs home shopping businesses in seven overseas countries, including China, India, Indonesia, Malaysia, Thailand, Turkey and Vietnam.
Its overseas home shopping sales reached 681.8 billion won (US$591.4 million) in 2013 and 894.1 billion won last year.