Koo Young-bae: "I Will Offer All My Shares, 38% Stake in Qoo10"

Delay in Settlement Crisis Appears in National Assembly After 22 Days
"Tmon Funds Used for Acquisition of Other Online Shopping Malls"
"Qoo10 Mobilizes 80 Billion Won, Files for Corporate Rehabilitation"

Gu Young-bae, CEO of Qoo10, stated on the 30th regarding the large-scale delay in payment settlements by TMON and WEMAKEPRICE, "I will put everything I have on the line to resolve this issue."

This marks the first time Gu appeared publicly in 22 days since the settlement delay began at WEMAKEPRICE on the 8th.

Koo Young-bae, CEO of Qoo10 Group, is attending an emergency inquiry related to the 'Timon and Wemakeprice settlement and refund delay incident' held at the National Assembly's Political Affairs Committee on the 30th. Photo by Hyunmin Kim kimhyun81@

On the same day, Gu appeared before the National Assembly's Political Affairs Committee for a hearing on the unsettled payments issue involving TMON and WEMAKEPRICE, saying, "I sincerely apologize to the sellers, partners, and the public who have been harmed by this incident."

He continued, "I have invested everything I have into the company," adding, "When the company's stock value was high, it was valued at up to 500 billion KRW, but after this incident, the stock was used as collateral..." and trailed off.

When asked about solutions to the issue, he said, "The group has about 80 billion KRW in funds that can be mobilized at maximum, but whether all of it can be immediately invested is uncertain," emphasizing, "I hold 38% of Qoo10's shares. I will put everything I have on the line."

Gu admitted to using TMON and WEMAKEPRICE funds to acquire a North America and Europe-based global online shopping mall in February.

Regarding the source of acquisition funds, he explained, "400 billion KRW was paid in cash, and temporarily, TMON and WEMAKEPRICE funds were also mobilized for that amount," adding, "However, this was repaid within a month." He stated that this is understood to have no connection to the settlement delay issue.

Gu said, "We were pursuing the NASDAQ listing of Qxpress, a Singapore-based logistics subsidiary, but this incident will inevitably delay the process."

He emphasized that there was no personal gain involved in this incident. Gu explained, "Most of the money was spent on promotions due to fierce price competition."

Lawmakers from both ruling and opposition parties criticized Gu for filing for emergency rehabilitation procedures in court just six hours after saying he would "use personal assets to repay unsettled payments."

Gu stated, "There is almost nothing we can do if the business stops now," adding, "If we receive just a little help, we can resume settlements and resolve the issue, and I am confident that we can restore the damages."

When lawmakers pointed out, "The chances of rehabilitation are slim, and who would trust and use the service again?" he responded, "I have dedicated 15 years to expanding the business with everything I have. The situation has worsened far beyond the risks we imagined and anticipated."

In a statement released the previous morning, Gu expressed, "I bow my head in deep apology to customers, partner companies, and the public who have been harmed by this incident," and pledged, "We will minimize customer damage and prevent further spread of the issue through swift action." Later that day, TMON and WEMAKEPRICE abruptly filed for corporate rehabilitation procedures in court.

This content was produced with the assistance of AI translation services.