'TIMF' Representatives Who Appeared in Court: "We Apologize to the Public... Fully Committed to Damage Recovery"

The CEOs of TMON and WEMAKEPRICE, who caused a large-scale settlement delay crisis, appeared at a court hearing on the 2nd to determine whether to commence corporate rehabilitation proceedings.

Ryu Kwang-jin, CEO of TMON, attended a closed hearing held at 3 p.m. at the Seoul Rehabilitation Court, Rehabilitation Division 2 (Presiding Judge Ahn Byung-wook, Judges Kim Ho-chun and Yang Min-ho). Before appearing at the court, CEO Ryu met with reporters and said, "We will proceed with the rehabilitation process as transparently as possible, and if given the opportunity through the Autonomous Restructuring Support (ARS) rehabilitation application, I will do my best and devote all my efforts as the CEO of TMON to restore the victims and normalize the company." He bowed his head and added, "Once again, I apologize to the victims."

Ryu Hwa-hyun, CEO of Wemakeprice (left), and Ryu Kwang-jin, CEO of Tmon, are greeting each other as they attend the hearing at the Seoul Bankruptcy Court in Seocho-gu, Seoul on the 2nd. The court plans to review the reasons for Tmon and Wemakeprice's rehabilitation applications, their debt status, and funding plans. Photo by Jo Yong-jun jun21@

CEO Ryu said, "Although I was the CEO of TMON, I have not been properly informed about the cash flow and other matters until now, which seems to have greatly contributed to the expansion of the damage." He added, "Through rehabilitation, with legal representatives and court supervision, management will become transparent, and by introducing escrow (payment protection service), the settlement funds for sellers will be fully protected. Therefore, I plan to share the operational status and continue to make efforts."

When asked if they are considering mergers and acquisitions (M&A), CEO Ryu replied, "Of course, we are considering everything," and added, "We are communicating and making efforts with about two parties, keeping M&A and investment attraction in mind."

Addressing the creditors, CEO Ryu said, "I have nothing to say even if I had ten mouths," and bowed his head again, saying, "I will work tirelessly to restore the damage and help those affected return to their daily lives and resume their businesses."

Following him, Ryu Hwa-hyun, CEO of WEMAKEPRICE, who also appeared at the court, apologized, saying, "I apologize to the many consumers and sellers who have suffered damage and to the entire nation who are stressed." He stated, "The going concern value of WEMAKEPRICE is estimated at about 80 billion KRW, and the liquidation value is remembered to be about 30 to 40 billion KRW," but refrained from answering questions about the number of creditors or the amount of claims, saying, "It would be better to disclose that during the court hearing process."

CEO Ryu of WEMAKEPRICE said, "I believe that the ARS program is essential to minimize damage and reduce everyone's stress," and added, "I think we should not just wait for a solution from Koo Young-bae (CEO of Qoo10 Group), so we are looking for ways." Regarding the public platform 'K-Commerce,' one of the self-help measures proposed by CEO Koo, he said, "If it materializes and helps recover the damage, we will actively support and work on it," but added, "We will continue to seek independent survival and actively participate in the rehabilitation process."

At the hearing, Presiding Judge Ahn and Chief Judge Yang will directly attend to inquire about the reasons for the rehabilitation applications of the two companies, their debt status, and funding plans. In addition, there will be questioning related to the ARS program applied for along with the rehabilitation. Currently, the assets and claims of both companies have been frozen.

Once the ARS program begins, the two companies will negotiate repayment plans for damage recovery under court support. On the other hand, if the application to commence rehabilitation proceedings is dismissed, TMON and WEMAKEPRICE are expected to proceed toward bankruptcy.