Sega to close Korean HQ

News

Tim Ingham Mar 31 2008, 11:25am

Far Eastern subsidiary dissolved; firm’s entertainment complex in Yokohama, Japan also terminated

Sega Sammy has announced that it is to shut down its Korean office, as well as discontinuing the development of its entertainment complex in Japan’s second biggest city.

Following a Board meeting, Sega Sammy Holdings announced: ”We determined [Sega Korea’s] dissolution for global business optimization.”

According to Next-Gen.biz, Sega’s Korean HQ has been handling domestic distribution and sales, as well as the operation of amusement facilities and sales/rental of amusement machines, since it was established in February, 2003.

Sega Sammy has yet to fix the date of the office’s dissolution.

The company added that it is to halt the development of an entertainment complex in Yokohama, Japan, in order to “focus its efforts on its core business to improve its performance promptly”.

In its most recent earnings release, Sega Sammy said that it expects to lose 26 billion yen this business year, and announced plans to cut 400 jobs as part of its latest “turnaround efforts”.