Due to a large-scale unresolved issue, the court manager of TMON and WEMAKEPRICE (Timap) has filed a request for asset preservation and damages amounting to 180 billion won against three executives, including Kyuhong Bae, the CEO of its parent company, Qoo10 Group.
According to legal sources on the 21st, Jo In-cheol, the court manager of Timap, has filed a request for an investigation and determination trial for asset preservation and damages against Qoo10 CEO Kyuhong Bae and TMON CEO Ryu Kwang-jin, and WEMAKEPRICE CEO Ryu Hwa-hyun at the Seoul Bankruptcy Court the previous day.
Jo noted, "Due to the Timap incident, 470,000 buyers (130 billion won) and 56,000 sellers (1.3 trillion won), totaling 530,000 people, have suffered losses amounting to 1.5 trillion won," and stated, "Employees of selling companies and their families, as well as other companies in the supply chain, are also suffering in succession."
He further explained, "We filed a petition with the bankruptcy court to freeze the assets of the three executives and hold them accountable for damages, reflecting the pain and desire for recovery of the victims."
According to the Debtor Rehabilitation Act, the court can conduct a trial to investigate and determine the existence and content of claims for damages against directors (executives) at the request of the manager or on its own after the initiation of rehabilitation proceedings. The court can also issue preservation orders for the assets of the directors.
Filing a petition for an investigation and determination trial under the Debtor Rehabilitation Act eliminates the need to pay the required 600 million won filing fees when bringing civil damage claims.
Jo estimated that the three executives, including CEO Kyuhong Bae, caused a loss to Timap of 180 billion won based on the contents of the indictment for allegations of embezzlement of settlement proceeds and breach of trust related to QooExpress.
Timap currently has no fixed assets, such as real estate, making it difficult for victims to recover their damages. According to a due diligence report by Ernst & Young Han Young Accounting Corporation, TMON's liquidation value is set at 13.6 billion won, with a negative going concern value of -92.9 billion won, while WEMAKEPRICE's liquidation value is 13.4 billion won, with a negative going concern value of -223.4 billion won.
The known assets of the three executives, including CEO Kyuhong Bae, are already subject to preservation orders through the court by the creditors.
Jo said, "I hope that even now, CEO Kyuhong Bae will make efforts to take financial responsibility for the recovery of damages," and added, "If CEO Bae and others contribute personally, we plan to use it entirely for compensation of the damages upon the court's permission."
Meanwhile, TMON has designated the dawn delivery company OA as a conditional acquirer for a merger and acquisition (M&A) prior to the approval of the rehabilitation plan and is conducting a public bidding process, aiming to determine the final acquirer by the end of this month.