South Korean baby and children's wear retailer Suhyang Networks has been acquired by privately held Fung Retailing.

A spokesperson for the Hong Kong-based group confirmed the acquisition of a majority 70% stake, saying it was undertaken in partnership.

Meanwhile, reports in the South Korean press say the retailer was sold for roughly KRW200bn (US$188m).

There has been speculation that the Fung Group was interested in buying Suhyang Networks since November, when reports emerged that it had completed due diligence on the firm.

Suhyang operates over 210 shop-in-shop stores in department stores in Korea for brands including Minkmui, Bluedog, Bluedog Baby, R.Robot, Denim In the Box and Lulabee. The company also manages nine outlet stores and three multi-brand shops in Korea.

Fung Retailing, which is a wholly owned subsidiary of the privately held Fung Group, says the acquisition is in line with plans to expand its portfolio of baby and children brands. It also plans to introduce international and European brands into Korea.

Suhyang will continue to enlarge its retail network in Korea and together with Fung Retailing, introduce its existing brands overseas outside of Korea and work on other retailing projects around Asia.

Fung Group is part of Fung Holdings, which is also a substantial shareholder of global sourcing giant Li & Fung Limited.

However the Fung Retailing businesses - which include luxury men's wear entity Trinity Limited, Asian casual and fashion retailer Branded Lifestyle Holdings, and Toys R Us (Asia) - are not related to Li & Fung.

Fung Retailing's businesses extend from Greater China to Korea, Singapore, Malaysia, Thailand, Indonesia and other South East Asia countries through a combined network of over 2,900 stores. Total annual turnover exceeded US$1.1bn in 2011.