[Alpha Biz= Paul Lee] Karrot Market has withdrawn from the United Kingdom, its first overseas market, after seven years of operation, as part of a strategic shift to concentrate on North America.
According to industry sources on May 10, Karrot terminated its “Karrot” service in the UK on April 30. The company had operated internationally in the UK, Canada, the United States, and Japan, but the exit reduces its overseas footprint to three countries.
The UK held symbolic importance as Karrot’s first international launch market, serving as a testing ground before expansion into Canada, the U.S., and Japan. However, the company operated in the UK without establishing a local subsidiary, and ultimately withdrew amid declining demand.
Karrot stated that the move reflects a strategic reallocation of resources toward North America, particularly Canada. “The closure of our UK service is not a contraction of our global business, but part of a selective focus strategy to strengthen our presence in North America,” a company official said.
Despite this repositioning, concerns are mounting over the profitability of Karrot’s overseas operations. Critics note that the company has continued investing abroad without delivering meaningful financial results, raising questions about sustainability.
Financial data highlights the disparity between domestic and overseas performance. Last year, Karrot’s Korean entity reported revenue of KRW 269 billion and operating profit of KRW 67.1 billion. In contrast, four subsidiaries—including Karrot Canada, Karrot Japan, Danggeun Pay, and Danggeun Service—generated just KRW 1.6 billion in combined revenue while posting an operating loss of KRW 52.5 billion. The majority of these losses stemmed from the Canadian operation, where founder and CEO Kim Yong-hyun is currently based.
Investment in North America has also risen sharply. Since 2021, Karrot has invested a cumulative KRW 92.1 billion into its Canadian entity, with annual investments increasing from KRW 2.8 billion in 2021 to KRW 36.3 billion last year, and KRW 20.2 billion in the first quarter of this year alone.
As Karrot positions North America as its primary overseas growth base, further investment is expected. However, given the significant losses even in regions where capital has been heavily deployed, industry observers say a broader restructuring of its global business may be necessary to achieve sustainable profitability.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
