British activewear label JD Sports is set to leave South Korea after five years of operations, Edaily reports.
The retailer was reported to have deepened deficits following the Covid-19 pandemic, which led to the decision. JD Sports Korea has notified all employees of the exit plan, the source said.
JD Sports entered South Korea in 2017 through a joint venture deal with South Korean footwear company Shoemarker. The first JD Sports store opened in April 2018. The company currently operates 14 directly managed stores nationwide, including Lotte World Tower in Jamsil, Seoul and Starfield Goyang.
Meanwhile, the UK retailer has recently been the target of a cyber attack that led to unauthorized access to a system containing customer data related to online orders between November 2018 and October 2020. The JD Sports group brands affected are JD, Size?, Millets, Blacks, Scotts and MilletSport.
British retailer Frasers Group bought a stake in JD Sports for about US$57.7 million earlier this year as the Mike Ashley-owned company continues its push into the more premium market.