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Choi Hyung-rok, CEO of BALAAN, attends a court hearing on the company’s application for court receivership at the Seoul Bankruptcy Court in Seocho-gu, Seoul, on April 3. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] South Korean online luxury goods platform BALAAN has been formally declared bankrupt by a court, marking the end of its attempted corporate rehabilitation.
According to industry sources on Tuesday, the Seoul Bankruptcy Court issued a bankruptcy ruling against BALAAN Co., Ltd. on April 24.
The deadline for filing creditor claims has been set for April 3, while the creditors’ meeting and claim investigation hearing are scheduled for April 16. Key agenda items at the creditors’ meeting are expected to include whether business operations should continue on a limited basis and the designation of storage locations for high-value goods.
In a notice, the court stated that “any party owing obligations to the debtor or holding property belonging to the bankruptcy estate must not make payments to or deliver property to the debtor, and must report such matters to the bankruptcy trustee.” Creditors who had already filed claims during the rehabilitation process are required to submit only any omitted portions of principal and interest accrued up to the date of the bankruptcy ruling.
Founded in 2015, BALAAN grew rapidly by promoting a direct transaction model with overseas luxury boutiques, emerging as a major player in South Korea’s luxury e-commerce market and expanding its transaction volume at its peak.
However, the company has struggled in recent years amid intensifying competition, deteriorating profitability, and mounting liquidity pressures. Its business was further undermined by controversies over product authenticity and delays in merchant settlements, which eroded market trust.
BALAAN sought court protection through rehabilitation proceedings in an effort to normalize operations, but failed to secure court approval for a rehabilitation plan. As a result, the process has now shifted to bankruptcy, under which the company will proceed with asset liquidation and creditor repayment.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
