SEOUL, KOREA - GS Home Shopping Inc. has plunged into a business of home shopping in Malaysia in cooperation with a local partner Astro Malaysia Holdings Bhd. The Korean comany said on February 11 that it has signed a shareholders agreement with Astro Retail Ventures Sdn. Bhd, the pay TV operator's 100-percent subsidiary. The newly created joint venture is named as "Astro GS Shop Sdn Bhd."

 

Of the total paid-in capital of US$21.9 million, GS Home will own a 40-percent stake, or $87.6 million. GS Home will be responsible for appointing chief executive officer and other operational matters while the remaining management control will be assumed by Astro Malaysia. The official launch date will be in July or August this year.

 

Astro Malaysia Holdings is the Southeast Asian country's largest media group with outlets in satellite TV, radio, and Internet. Given its customer base of 3.8 million households and the monopolistic status in pay TV, a GS Home Shopping official said, "It will be unmatched by any physical retail chain stores."

 

Cho Sung-ku, GS Home Shopping's head of global business division, said, "There is only one local home shopping operator which we believe will pose little competitive threat. Given the excellent basic infrastructure in Malaysia in electric power, road system, and communications, we are optimistic that our business there will go smooth."

 

Malaysia is GS Home Shopping's seventh overseas market after moving into other national markets such as China, India, Turkey, Vietnam, Thailand, and Indonesia.