Topics
Latest
AI
Amazon
Image Credits:Getty Images
Apps
Biotech & Health
Climate
Image Credits:Getty Images
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
Gadgets
Gaming
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
Security
Social
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
The father and chief operating officer of Singapore - based marketplace Qoo10 has pledged to apply his personal assets to ensure about $ 58 million ( 80 billion KRW ) to compensate South Korean customers and vendors affected by his troupe ’s liquidity crisis , which in turn leave in conk out requital to about 60,000 little merchants who trade through its Korean marketplace subsidiaries , TMON and WeMakePrice .
During an exigency hearing held by the South Korean government to discuss Qoo10 ’s liquidity crisis , Young - bae Ku , the company ’s founder , say he would secure the amount over the next 30 day . He holds a 42.77 % bet in Qoo10 , while private equity firms , including KKR , own a 25.65 % wager in the Singaporean Es - commerce platform .
“ I will betray my whole stake in Qoo10 or use it as collateral to deal with the situation , ” Ku said .
The hearing comes a day after TMON , once evaluate at $ 1.4 billion , andWeMakePricefiled for homage receivership after failing to pay merchants this month .
Qoo10 will assure emergency liquidity from overseas funds , deal its subsidiaries , or practice them as collateral for cash , the company allege in a statement on Monday . Qoo10 hadtold Korean fiscal authoritiesthat it plan to raise $ 50 million in August , but concord to the nation ’s Financial Services Commission , the troupe is yet to pass on details .
The Seoul Bankruptcy Courtsaid this week that TMON and WeMakePrice have been unable to recover on their own and that it would review their app and decide whether to initiate the rehabilitation procedure . The review process commonly takes anywhere from a calendar week to a month , per Korean media .
The government steps in
South Korea ’s Ministry of Economy and Finance on Mondaysaidit would provide $ 400 million ( 560 billion KRW ) in fiscal support to vender impress by defrayal delays on TMON and WeMakePrice . In increase , South Korean financial authorities announced plans to provide low - interestingness loans to the merchant impacted by the spot , along with choice for extending repayment on current loan and revenue enhancement .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
According to the ministry , these merchants ’ unpaid vizor have grown to around $ 151 million ( 210 billion KRW),up from $ 123 million last week , and there are concerns that the bank bill could inflate to $ 722 million ( 1 trillion KRW ) .
Over the last few years , Qoo10 has opted to grow through a serial publication of acquisition as it sought to beef up its grocery store presence and devise its logistics unit Qxpress for an initial public offering on Nasdaq in the U.S. In addition toacquiring WeMakePrice in April 2023 , andTMON in August 2022 , Qoo10 picked up Korean on-line shopping platformInterPark Commerce ( not the same as InterPark Triple ) in March 2023as well as Hong Kong - based Korchina Logisticsvia its logistics unit , Qxpress . Earlier this class , Qoo10 acquiredWish , the U.S.-based e - commerce platform , andAK Mall , an einsteinium - commerce troupe in South Korea .
However , these acquisitions also brought about financial burdens and operable challenges , leading to the current liquidity crisis .
institute in 2010 , Qoo10 is a Singapore - headquartered joint speculation firm formed by the U.S. e - commerce company eBay and Gmarket laminitis Young Bae Ku , an atomic number 99 - DoC mogul from South Korea .
