Huh Tae-soo, vice chairman of GS Home Shopping, called for the establishment of Korea's home shopping business model on the basis of global home shopping standards during the global sales conference held last year.
After ten years of focusing on quantitative growth in overseas business, GS Home Shopping is now shifting focus toward achieving qualitative growth. GS Home Shopping took its entry into the Russian market as a starting point in this strategic shift.
Huh said, "We will make this year as the first year of achieving profits in overseas business. By entering the Russian market, we expect the amount of transactions we handle to exceed 2 trillion won within the next two to three years."
The home shopping company announced on July 22 that it decided to set up a joint venture with Russia's largest state-run telecom company Rostelecom. This will be the first time among Korean home shopping channels to make entry into the Russian market.
The joint venture, with the paid-in capital of US$20 million which will be financed on a 40:60 basis by GS Home Shopping and Rostelecom, will launch a home shopping TV channel service from next year.
