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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul – Wemakeprice (WMP), a domestic e-commerce platform, is effectively on the path to bankruptcy after the Seoul Bankruptcy Court on September 9 ordered the termination of its corporate rehabilitation proceedings.
The termination decision will become final if no immediate appeal is filed within 14 days.
Background
In July 2023, both Wemakeprice and fellow e-commerce operator Tmon entered court receivership following large-scale unpaid settlements and unrefunded payments to merchants and customers.
To survive, the companies pursued pre-approval M&A processes in search of new investors or acquirers before rehabilitation plans were finalized.
Tmon successfully secured acquisition by Oasis, a fresh grocery delivery specialist, and subsequently ended its rehabilitation proceedings on August 22, 2024.
In contrast, Wemakeprice failed to attract a buyer, leading to today’s court decision.
Implications
The termination of rehabilitation effectively signals Wemakeprice’s collapse as a viable business entity, highlighting the challenges faced by second-tier Korean e-commerce firms in competing with dominant players and adapting to shifting consumer behavior.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
