AliExpress Korea 'not considering' acquiring WeMakePrice as failing platform searches for buyer

Industry

AliExpress Korea 'not considering' acquiring WeMakePrice as failing platform searches for buyer

Published: 01 Aug. 2024, 13:23 Updated: 01 Aug. 2024, 14:55

KIM JU-YEON
kim.juyeon2@joongang.co.kr

WeMakePrice's headquarters in Gangnam District, southern Seoul is empty on Wednesday. [YONHAP]

AliExpress Korea does not plan to acquire WeMakePrice despite the fact that the Qoo10 subsidiary is reportedly pursuing a buyout from Chinese retailers Alibaba and Temu.

“AliExpress is currently not considering taking over WeMakePrice, nor was there any contact with the company,” a spokesperson for AliExpress Korea told the Korea JoongAng Daily.

AliExpress Korea could not confirm whether WeMakePrice had contacted Alibaba Group, the Chinese parent company of AliExpress.

The e-commerce platform and its affiliate TMON filed for court receivership on Monday after failing to pay its listed merchants amid a massive liquidity crisis at Qoo10.

Temu had not commented on the matter as of press time.

The Chosun Ilbo reported Thursday that WeMakePrice planned to approach Alibaba and Temu about an acquisition separately from TMON or Qoo10, citing a “high-ranking executive” at its parent company.

“We are planning to hand over shares [to Chinese retailers] at whatever amount, whether it be 50 billion won [$36.6 million] or 100 billion won, continuing business with them then taking back 100 percent of the stake,” the source reportedly said.

The source also estimated the total amount of unpaid earnings to sellers on TMON and WeMakePrice, as of July, to be 1 trillion won, with WeMakePrice carrying 300 billion to 350 billion won of that debt and TMON accounting for the other 700 billion won.

In a message sent to media outlets Thursday following the release of the Chosun Ilbo report, Qoo10 founder and CEO Ku Young-bae said WeMakePrice co-CEO Ryu Hwa-hyeon was pursuing a buyout independently through his personal network while also seeking loans for Qoo10.

The Qoo10 executive also reportedly expressed frustration toward the vicious circle his company has entered.

“To resolve the situation, we have to operate the websites, but that is impossible as payment gateways are all blocked,” Ku wrote.

“We must resume business to minimize damages for customers and sellers. That’s how [the company] will raise its value for an acquisition and for its shares to recover. It’s frustrating how the situation continues to worsen.”

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]