[Alpha Biz= Kim Jisun] Seoul, October 14 — GS Retail, led by CEO Heo Seo-hong, announced plans to sell its pet-care subsidiary AboutPet, taking a major step to streamline non-core operations and focus on strengthening its core retail business.
According to a regulatory filing released on Monday, GS Retail decided to forgive ₩20 billion ($14.5 million) in loans previously extended to AboutPet. Of this, ₩17 billion will be written off immediately, with the remaining amount to be partially repaid and later forgiven.
GS Retail currently holds a 66.15% ownership stake in AboutPet, making it the company’s largest shareholder.
Preparing for Sale
The debt forgiveness is understood to be part of pre-sale conditions requested by the prospective buyer. While the buyer has not yet been finalized, industry sources suggest that AboutPet’s original founder may consider reacquiring the company.
GS Retail officials explained that the decision was aimed at meeting key prerequisites for the transaction, adding that the move is in line with the company’s broader restructuring strategy:
“We are refocusing on our core competencies and improving operational efficiency by exiting underperforming business units.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
