Amid controversy over unpaid sales proceeds, Balaan CEO Choi Hyung-rok issued an apology on the 28th. Previously, Balaan announced that it would confirm the unpaid amounts and schedule on the same day but failed to do so.

On the same day, Choi Hyung-rok said in a notice to sellers, “I sincerely apologize for the concern caused by the delay in settlement issues,” adding, “I am taking the current situation seriously and am doing my best to resolve it day and night.”

On Oct. 7, 2022, Choi Hyung-rok, the representative of Balaan, appears as a witness at the National Assembly's Political Affairs Committee's inspection of the Fair Trade Commission, Korea Consumer Agency, and Korea Fair Trade Mediation Agency in Yeouido, Seoul, responding to questions from lawmakers. /Courtesy of News1

However, without mentioning specific settlement schedules, he only said, “We will finalize the implementation plan within this week and will arrange a meeting next week to transparently explain the circumstances so far and future plans.”

Since the 24th, Balaan has failed to pay seller fees, heightening sellers' anxieties to the extent that concerns of a 'second Timaf incident' have emerged.

On the 25th, Balaan stated to the companies that had not received their settlement funds, “During our internal financial inspection, errors such as overpayment of settlement amounts were discovered, and we are recalculating the settlement amounts,” adding, “We will complete the recalculation by the 26th and share the confirmed settlement amounts and payment schedules for each company by the 28th.”

Choi indicated, “To resolve settlement issues and normalize services, the management team and shareholders, including myself, are exploring all possibilities, including the influx of external funds, to realize the fastest and most stable restoration scenario.” He noted that last month, they went ahead with investment attraction, even accepting conditions that would reduce corporate value to one-tenth and relinquishing management rights.

He continued, “Being swayed by external speculative information only heightens unnecessary anxiety and can act as a substantial risk,” and stated, “Starting next week, we will begin face-to-face communication to create real change and solutions together.”

Balaan is the leading company in market share based on transaction volume in 2023. This company has been in a state of complete capital impairment and secured a conditional investment of 15 billion won from SILICON2 last month. However, less than a month later, the unpaid settlement situation has raised concerns about Balaan's liquidity issues.