Qoo10’s CEO, Young-bae Ku, pledges $58M of his personal assets to compensate Korean merchants impacted by the company's liquidity crisis. The South Korean government will provide an additional $400M in financial support to the affected vendors.
Qoo10, a Singapore-based marketplace, is in a liquidity crisis. The company failed to pay about 60,000 small merchants on its Korean subsidiaries, TMON and WeMakePrice. This led to an emergency hearing by the South Korean government. Qoo10’s CEO, Young-bae Ku, pledged $58M of his personal assets to compensate affected merchants. He owns a 42.77% stake in Qoo10, while private equity firms like KKR own a 25.65% stake.
South Korea’s Ministry of Economy and Finance announced $400M in financial support for vendors affected by payment delays on TMON and WeMakePrice. They also plan to offer low-interest loans and extend repayments on current loans and taxes. The unpaid bills for these merchants have grown to around $151M, up from $123M last week, with concerns it could reach $722M.
Qoo10 plans to secure emergency liquidity from overseas funds, sell subsidiaries, or use them as collateral. The company had previously planned to raise $50M in August but hasn’t submitted details to Korean financial authorities. TMON and WeMakePrice, once valued at $1.4B, filed for court receivership after failing to pay merchants. The Seoul Bankruptcy Court is reviewing their applications for rehabilitation.
Qoo10 expanded through acquisitions to strengthen its market presence and prepare its logistics unit, Qxpress, for a Nasdaq IPO. Recent acquisitions include WeMakePrice, TMON, InterPark Commerce, Korchina Logistics, Wish, and AK Mall. However, these moves led to financial burdens and operational challenges, resulting in the current liquidity crisis. Qoo10 was founded in 2010 as a joint venture between eBay and Gmarket founder Young-bae Ku.
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