Qoo10 Group is pursuing a major merger of its key e-commerce subsidiaries including TMON, Wemakeprice and Qoo10 in a strategic move to streamline operations and address financial inefficiencies. The merger plan, likely to be led by Wemakeprice, is aimed at consolidating subsidiaries that have fallen into a capital-eroded state, with Interpark Commerce and AK Mall excluded from the proposed merger.
According to the capital market and distribution industry on the 17th, Qoo10 Group plans to promote the merger of TMON, Wemakeprice, and Qoo10 Technology. The merger is expected to be centered around Wemakeprice.
Qoo10, an e-commerce company founded in Singapore in 2010 by GMarket founder Koo Young-bae, has been on an acquisition spree in recent years. The company acquired TMON in 2022, Wemakeprice and Interpark in 2023, AK Mall and global e-commerce platform Wish in 2024. Despite these acquisitions, the financial status of some of these subsidiaries has come under scrutiny.
According to the Financial Supervisory Service, TMON's total capital as of 2022 will be -638.6 billion won (about -473 million dollars), indicating a state of complete capital erosion. During the same period, TMON's current liabilities increased 22% year-on-year to 719.3 billion won, while current assets decreased 22% to 130.9 billion won. Similarly, We Make Price has been in a state of complete capital erosion since 2019, with current liabilities increasing 37% year-on-year to 309.8 billion won at the end of last year, and current assets decreasing 21% to 61.7 billion won.
Despite their financial woes, these subsidiaries have a strong presence in the market, with trading volumes for TMON, Wemakeprice and Interpark reaching approximately 7 trillion won as of 2022. Qoo10 Technology, formerly known as Giosis, changed its name in March to reflect the company's ongoing efforts towards rebranding and restructuring.
An industry insider commented on the potential impact of the merger, “If the existence of the affiliated e-commerce companies that support Qxpress's performance is weakened, it may also weaken the NASDAQ listing plan. This highlights the importance of stabilizing the financial health of these subsidiaries to support the Qoo10 Group's broader strategic goals, including Qxpress's NASDAQ listing plan.”
Another industry insider pointed out, “This unresolved issue will be an opportunity to advance the efficiency of e-commerce,” suggesting that the merger could be a catalyst for improving operational efficiency and financial stability within the group.
Meanwhile, Qoo10 Group announced compensation measures for delayed payments to approximately 500 affiliated companies on the 8th. The main measures include paying 10% interest per year for the delayed period, reducing commission rates for product sales by 3%, and offering the opportunity to purchase stock for 50% of the delayed amount. These measures are seen as aimed at maintaining strong business relationships and reducing the negative impact on the company's reputation.
