Collected Opinions to 'Save' but 'Timeff' on the Verge of Collapse

Over 90% of Users Leave Timef Platform
Interpark Commerce Also Files for Rehabilitation Proceedings

Tmon and Wemakeprice (Timep) have agreed with creditors on prioritizing the company’s survival and have bought time until the end of this month, but it is uncertain whether an agreement can be reached at the second rehabilitation procedure meeting scheduled for the 30th. Securing key investors is difficult, and due to a loss of trust, Timep’s competitiveness as an e-commerce platform has plummeted. Interpark Commerce also ultimately applied for corporate rehabilitation in the form of an Autonomous Restructuring Support (ARS) program following Timep, complicating the situation further.

According to Mobile Index by data company IGAWorks on the 18th, the daily active users (DAU) of Tmon and Wemakeprice on the 10th were 108,000 and 87,000 respectively. Compared to the DAU levels of 940,000 and 790,000 on the 24th of last month, when the settlement delays that started at Wemakeprice spread to Tmon and the problem began to escalate, more than 88% and 89% of users have left respectively.

DAU refers to the number of people who visit and check the platform at least once a day. The industry explains that most of the remaining users are victims trying to understand the situation. This means the platforms can no longer function as e-commerce platforms. Timep has announced, "The app is still operating, but please note that orders may be temporarily unavailable to prevent any additional damage to customers and partner companies." Although Timep has decided to focus on normalizing company management with major creditors, the platforms of both companies are on the verge of collapse. Ryu Hwa-hyun, CEO of Wemakeprice, said after the first rehabilitation procedure meeting, "Creditors said e-commerce is like melting ice, and since it melts faster over time, they hope the procedure will be decided quickly."

In this situation, Timep plans to focus more on finding investors to raise funds. They intend to actively attract investment by the second meeting to persuade the creditor group. The CEOs of both companies also said, "Finding investors as soon as possible is the most important part." The issue is whether Timep’s management can secure a definite investor by the end of this month. The industry analyzes that beyond just scouting investors, signing a binding contract is necessary to convince creditors. Timep estimates that an investment of around 100 billion KRW is needed for the company to normalize.

Interpark Commerce’s application for corporate rehabilitation in the form of an ARS program on the 16th, following Timep, is also a variable. Interpark Commerce explained that the settlement delay incident at Timep in July affected them, leading to sellers halting transactions and customers leaving, which resulted in the decision to apply for corporate rehabilitation. Interpark Commerce is discussing various options ranging from strategic investments with multiple potential investors to company sales, but states that more time is needed to produce tangible results. This means there is now one more e-commerce platform urgently needing investment.

If Timep dramatically succeeds in attracting investors and reaches an agreement through the ARS program, the rehabilitation application may be withdrawn after creditor approval. In this case, creditors will be repaid according to each company’s investment and self-rescue plans. However, if no agreement is reached, the ARS program will end and the court will initiate a forced rehabilitation procedure. The legal community views that if no conclusion is reached in the ARS program and the rehabilitation procedure begins, there is a high possibility it will lead to bankruptcy.