Gu Kyung-bae "Establishment of Timeff Integrated Shopping Mall"... Sellers Linked to Avoid Legal Action Attempt

"TIMF to Merge Under the Tentative Name 'K-Commerce' and Convert Bonds to CB"
Legal Community Points Out "Avoidance of Legal Liability for Fraud Charges"
'TIMF' CEOs Propose Separate Sale Plan

As the court applies a one-month Autonomous Restructuring Support (ARS) program to TMON and WEMAKEPRICE (Timep), both of which have filed for corporate rehabilitation, Koo Young-bae, CEO of Qoo10, argued that TMON and WEMAKEPRICE should be merged into a so-called provisional ‘K-Commerce’ shopping mall to save them. On the 5th, CEO Koo told Asia Economy, "During the ARS period, I will specifically present that merging the two companies into K-Commerce is the best option for each company."

This is completely different from the approach pursued by Ryu Kwang-jin, CEO of TMON, and Ryu Hwa-hyun, CEO of WEMAKEPRICE, who are pushing for separate sales of their companies from Qoo10. Legal circles point out that CEO Koo’s stance is a calculated move to minimize the legal responsibilities he must bear.

CEO Koo’s plan is to merge Timep into ‘K-Commerce’ and convert part of the unpaid sellers’ claims into convertible bonds (CB) of the merged company, thereby making them shareholders. The idea is to give the affected sellers shares of the merged company instead of payment, so the company can be saved first. However, it is analyzed that sellers facing bankruptcy are unlikely to agree to this plan. Nevertheless, CEO Koo stated, "We are currently working on a project to concretize the details so that K-Commerce can be the best solution for the sellers."

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@

The reason CEO Koo insists on the low-probability ‘K-Commerce merger’ is analyzed to be that showing efforts to persuade the creditors (sellers) could reduce his future legal liabilities. Lawyer Shim Jun-seop of Shim Law Firm said, "In cases of fraud charges, showing active efforts later to restore damages can be an important mitigating factor," adding, "Also, persuading that there was no initial intent or will to deceive the victims can significantly influence the court’s judgment." With the prosecution’s scrutiny, including raids, directed at CEO Koo, actively persuading the creditors could reduce his judicial burden.

However, the K-Commerce merger plan is evaluated as merely a ‘way out’ for CEO Koo rather than an effective measure. Lawyer Cho Dong-hyun of Barun Law Firm said, "Realistically, in a situation where repayment of public claims such as wages or operating funds is insufficient, attempts to persuade creditors will likely be just a gesture."

CEO Koo’s plan also contradicts the separate sales efforts being pursued by TMON and WEMAKEPRICE. After the ARS program decision, TMON began discussions on investment attraction and sales with major investors. WEMAKEPRICE is also discussing mergers and acquisitions (M&A) under the leadership of CEO Ryu Hwa-hyun. Interpark Commerce, which is not a party to the corporate rehabilitation application, is also exploring sales. Recently, Interpark Commerce sent a certified letter to Qoo10 to recover outstanding payments. All of Qoo10’s domestic e-commerce subsidiaries are attempting to survive independently. However, the e-commerce industry views that these separate sales plans are unlikely to succeed given the uncertain scale of debts such as unsettled amounts. With Qoo10’s major shareholders, Monster Holdings and Wonder Holdings, unable to inject funds, attracting external capital is also difficult.

Regarding this, CEO Koo said, "During the ARS period, the court requires each company to first seek other rescue measures." Regardless of TMON and WEMAKEPRICE finding self-help plans during the ARS period, he intends to push for the merger of the two companies. He drew a clear line, saying, "I am not involved in the sales work being pursued by TMON and WEMAKEPRICE (led by each company’s CEO)."

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