Qoo10 group seems to be headed toward dissolution

[Photo by Yonhap]

South Korean e-commerce affiliates of Singapore-based multinational e-commerce group Qoo10 Pte. began looking for its own survival strategies, while the group’s chief executive officer expressed his commitment to reorganizing the group via the merger of its cash-strapped e-commerce platforms TMON and WeMakePrice, which caused confusion.

According to sources from the distribution industry on Sunday, Interpark Commerce Corp. recently sent a certified mail to Qoo10 requesting the return of its receivables. It is reported that the amount Interpark Commerce has not received from Qoo10 and its technology development affiliates Qoo10 Technology and Qoo10 Network is approximately 65 billion won ($47.86 million). It is unusual for a subsidiary to send a certified mail regarding its unpaid debts to its parent company, who holds 100 percent of its shares.

Some believe that the Qoo10 Group is on the verge of dissolution and that it could be difficult for the group to resolve the situation. Qoo10 CEO Ku Young-bae, however, said in an email interview with Maeil Business Newspaper that he is still pursuing the ‘K-Commerce’ plan to merge TMON and WeMakePrice.

“Since both companies (TMON and WeMakePrice) are applying for voluntary restructuring and rehabilitation, each company is seeking ways to save the company and minimize damage,” he said, denying that the group is on the verge of collapse.

“My goal is to merge the two companies as a solution at the group level and to accept applications to convert some or all of the outstanding bonds held by the sellers into convertible bonds (CBs), so that the seller group can become K-Commerce’s majority shareholder,” Ku added.