SK Networks mulls selling fashion business

SK Networks is reviewing a plan to sell its fashion business unit to Hyundai Department Store, industry sources said Tuesday.

The trading and hotel unit under major conglomerate SK Group is in discussions with the major department store to sell the unit for around 300 billion won ($268 million), they said.

"The plan to purchase the fashion unit of SK Networks is true, but it has not been decided," a Hyundai Department Store official said.

The move comes as SK Networks recently suffered a setback after losing its bid to renew a license to operate a duty-free outlet in Seoul.

The sources said the plan is part of the company's move to diversify its business portfolio.

SK Networks said the fashion unit logged 560 billion won in revenue last year. The fashion unit has two main business -- a global brand business that sells local brands and a licensed brand business that sells major foreign brands, including Tommy Hilfiger and Club Monaco, in the local market. (Yonhap)