The payment service of the online luxury platform Balaan has been fully suspended.
According to the industry on the 30th, Balaan has blocked all product purchases and payments since the night of the 28th. Currently, the payment screen only displays a notice stating, 'All payment methods are unavailable.' The Balaan payment service itself has also stopped.
It appears that credit card companies and electronic payment agents (PG) have suspended services and withdrawn.
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Balaan was embroiled in controversy over unpaid sales amounts to some partner companies as they failed to pay on the 24th. Balaan noted that a settlement error occurred, which delayed the settlement schedule, and promised to announce the resumption of settlements by the 28th, but had not taken any substantial action by 9 a.m. on the 30th.
Choi Hyung-rok, the CEO of Balaan, issued an apology for the delay in settlements and explained that he would meet with partner companies directly to clarify the situation and plans.
Founded in 2015, Balaan was once valued at 300 billion won in 2022. However, it has struggled in recent years with poor sales and consumer attrition. In that process, its corporate value plummeted to a level one-tenth of that, around 30 billion won.
Balaan recorded a cumulative operating loss of 72.4 billion won over the four years from 2020 to 2023. It is estimated that it also incurred significant losses last year. Since 2023, it has fallen into a state of complete capital erosion.