[Exclusive] Same-Day Seafood Delivery 'Oneulhoe' Notifies All Employees of Recommended Resignation... Service Suspension

Steps to Wind Down Business Amid Liquidity Crisis
Focus on Future Recovery Prospects

[Asia Economy Reporter Kwangho Lee] The fresh food delivery platform ‘Oneulhoe,’ which provides same-day seafood delivery services, is suspending its service. Due to worsening cash flow issues, the company has reached a point where it cannot continue its business operations. Attention is now focused on the possibility of future recovery.

According to industry sources on the 1st, Oneulsiktak, the operator of Oneulhoe, notified all employees of recommended resignations under the name of CEO Kim Jaehyun the day before. Subsequently, from today, same-day seafood delivery services have been halted. Currently, most products are marked as ‘temporarily out of stock.’ The problem is that there is no foreseeable resolution. Recently, after the Chief Operating Officer (COO) and Chief Financial Officer (CFO) left the company, negative developments have continued.

An industry insider said, “These events happened in just one day,” adding, “We urgently held a board meeting, but at present, there is no visible way out.”

Previously, Oneulhoe had gathered 750,000 members under the banner of delivering ‘Jeju Island Spiny Shrimp Sashimi’ and ‘Tongyeong Abalone Sashimi’ ordered before 3 p.m. to the dinner table on the same day. However, the company failed to pay its seafood suppliers and delivery partners. The company explained that the payment delays were a temporary issue caused by changes in its settlement system, but as the unpaid amounts to partner sashimi restaurants and others increased, it ultimately declared default.

Oneulsiktak, launched in 2017, is a seasonal seafood startup. CEO Kim Jaehyun, who worked as a marketer at a domestic company, modeled the company after the famous American grocery delivery service ‘Instacart.’ The company operates Oneulhoe, which plans, purchases, and sells seasonal seafood products. Oneulsiktak has been discovering and providing various private brand (PB) seafood products.

Oneulsiktak has grown by securing major financial investors (FIs). In early last year, it received a Series B investment worth 12 billion KRW. At that time, prominent investors such as Hana Ventures, KT Investment, Gaia Ventures, Korea Growth Investment Corporation, Mirae Asset Venture Investment, and Mirae Asset Capital participated. Existing investors including Korea Investment Partners, KTB Network, and Daesung Startup Investment also made follow-up investments.

In particular, follow-up investments from Korea Investment Partners, KTB Network, and Daesung Startup Investment attracted market attention. The company continued to grow through funding from major venture capital firms. Then, in July, it secured an additional 5 billion KRW from existing shareholder Hana Ventures. Despite the deteriorating market conditions, it was valued higher than the previous round.

Despite raising investment funds until recently, the company struggled to pay its partner companies. As the amount owed to partners increased, the company resorted to the last option of recommending all employees to resign. It is reported that many partner companies are currently facing difficulties due to unpaid payments.

The concerns of the FIs are also deepening. Oneulsiktak was recognized as a highly promising company, with not only major venture capital firms but also the policy institution Korea Growth Investment Corporation directly investing. However, as the company ultimately fell into crisis, the FIs’ exit (investment recovery) strategies have been disrupted.