[Viewpoint] Can Koo Youngbae Make a Comeback?

The Downfall of Consecutive 'First-Generation IT Venture' Leaders
Is the Lack of Entrepreneurial Spirit to Blame
for Mistaking External Growth for Innovation?

The most malicious aspect of the TMON and WEMAKEPRICE (Timep) incident was the massive gift card discount event held just before the settlement delays occurred, and the initial announcement that it was a 'simple system error.' They sold twice as many gift cards as usual, which directly resulted in consumer damage. There is substantial circumstantial evidence that they recklessly distributed gift cards while anticipating they would be unable to pay the sellers.

In response to questioning at the National Assembly on the 30th of last month, Koo Young-bae, CEO of Qoo10 Group, said, “I issued instructions to consider how to reduce the gift cards.” This implies he was aware of the high risk that the gift cards would become worthless. Both the Fair Trade Commission and the Financial Supervisory Service acknowledged that they took no significant action, trusting the false report of a system error. Therefore, the Financial Supervisory Service Governor Lee Bok-hyun’s comment that “they are like the boy who cried wolf and cannot be trusted” is a rather mild expression. It would be more accurate to call it a deliberate fraud.

To what extent should we trust such companies and businesspeople? Is the ‘K-Commerce’ recovery plan proposed by CEO Koo another scam? Many suspect his proposal to create a new global platform by making sellers who have not been paid shareholders is simply shifting responsibility onto the sellers. There is also criticism questioning who would use a shopping mall created in this way, and the author himself would probably not swipe a card there.

The author requested a rebuttal from CEO Koo. In response to the inquiry, he said it was an idea he had been developing for 15 years and asked, “I have been running toward this vision alone; can I just give up now?” When asked again for a logical rebuttal, questioning what the critical media misunderstood, he only replied, “It is a natural suspicion and reproach,” and then cut off contact.

The author once had lengthy conversations with several entrepreneurs praised as the so-called IT venture legends and noticed a peculiar commonality among them. They tend to overestimate themselves while simultaneously underestimating or completely failing to recognize the social status that comes with their success. Their pride in having ‘achieved innovation’ is, to put it colloquially, sky-high. The author does not intend to belittle their efforts, but the idea that rapid success equates to innovation is a misconception. Quickly riding the wave of innovation laid down by global IT companies is merely cleverness in sensing industrial change.

On the other hand, the author has never sensed a deep reflection on the reality that their business is connected to words like national economy, citizens’ assets, or social safety beyond personal success. Of course, there are exceptions, but conversations with them often ended with blunt expressions of desire for financial success, such as “What’s profitable these days?” or “A famous foreign CEO invested somewhere and made a fortune.” The author believes there is a certain correlation between this personal impression and the successive downfalls of IT venture stars.

Recently, a prominent IT venture star fell due to stock manipulation charges. Now, we bitterly witness a malicious incident where a person known as a ‘first-generation e-commerce leader’ misappropriated customer funds and spread false information about a system error despite sensing the crisis.

Were CEO Koo’s past achievements, including the success of Gmarket, truly products of innovation? What has driven him to come this far, and where is he headed? Can CEO Koo and the entrepreneurs around him make a comeback? Should our society give these merchants another chance?