Balran CEO's Hollow Statement... Sellers Furious, "Is This Just Stalling?"

Choi Hyung-rok Issues Official Statement Five Days After Settlement Delay Incident
No Guidance Provided on Specific Settlement Schedule
Sellers' Anxiety Grows Over Unsettled Payments

Choi Hyung-rok, CEO of Ballan, issued an official statement five days after the settlement delay incident, but sellers have responded coldly. The statement lacked guidance on the specific settlement schedule initially promised, leaving sellers anxious.

On the morning of the 28th, the first floor of the Balran headquarters was visited. A sign reading "All Balran employees on the 10th floor working from home" was left alone. Photo by Jaehyun Park

On the 28th, CEO Choi said in a statement posted on the Ballan Partner Center, "We sincerely apologize for the concern caused by the recent settlement delay issue," and added, "We will finalize an action plan within this week and arrange a meeting next week to visit you (sellers) in person to transparently explain the circumstances so far and future plans."

Previously, Ballan announced on the 24th, after causing the settlement delay incident, that it would notify the settlement schedule and specific amounts by that day, citing a settlement system error as the reason. However, the statement on this day did not provide any specific details related to this.

Sellers have not been able to hide their anger over this. In a KakaoTalk open chat room with about 700 participants, including Ballan sellers, negative reactions continued, such as "Does this mean they are not going to settle?" "The promise to inform the settlement schedule was a lie," "(The statement release) is just a stalling tactic," and "It looks like a long-winded excuse saying they have no money."

Tenant companies that have not yet received their sales proceeds are worried about losing money. Ballan's average monthly transaction amount is around 30 billion KRW, and the total number of tenant companies is about 1,300. The settlement cycle is divided into three types: weekly, biweekly (15 days), and monthly. Most tenants receive settlements on a weekly or biweekly basis, but some tenants on a monthly cycle are included up to sales from February. The damage amount per individual seller is known to range from tens of millions of KRW to several hundred million KRW.

Sellers are encouraging customers to return products to prevent further damage. When a buyer requests a return, the amount transferred from the electronic payment gateway (PG) company to Ballan can be minimized, reducing losses. Some sellers are offering gifticons such as coffee coupons to buyers to encourage returns.

Additionally, some sellers who have not received their settlements are currently considering legal actions against Ballan. Sellers are sharing their damage situations through the KakaoTalk open chat room and discussing response plans, including consultations with lawyers.

There are also predictions that Ballan may apply for corporate rehabilitation procedures. If Ballan files for rehabilitation, internal funds will be frozen and repayments will be made according to the rehabilitation plan, meaning sellers will not receive settlements immediately. However, CEO Choi did not make any specific mention of corporate rehabilitation in the notice.