SEOUL — Qoo10, a Singapore-based e-commerce giant, announced plans on Friday to merge its struggling South Korean subsidiaries, TMON and WeMakePrice, in a bid to address their severe liquidity issues.
According to Yonhap News Agency, the company has initiated the process to create a new business entity called K-Commerce Center for World (KCCW), with an initial investment of 1 billion won (US$730,000). This move is part of a broader strategy to consolidate the operations of TMON and WeMakePrice under one umbrella, which now awaits approval from the Seoul Bankruptcy Court. The two platforms had previously filed for corporate rehabilitation after failing to fulfill financial obligations to vendors and customers, exacerbated by their parent company’s aggressive expansion tactics.
Ku Young-bae, the South Korean founder and CEO of Qoo10, revealed plans to divest all stakes in both TMON and WeMakePrice as part of the merger strategy. He also intends to place his 38 percent ownership of Qoo10 into KCCW. This strategic decision follows Qoo10’s acquisition of TMON in 2022 and WeMakePrice in the preceding year, aiming to streamline operations and resolve ongoing financial challenges.