As Korea's used-goods marketplace platform sector enters a growth plateau, flagships Karrot Market and Bungaejangter are taking divergent paths. While Karrot Market is attempting to broaden its reach with a push into North America and artificial intelligence (AI)-driven innovation, Bungaejangter, after a private equity fund (PEF) acquisition, is focusing on shifting to a payment fee-centered revenue structure to restore profitability.
According to app analysis service WiseApp Retail on the 15th, as of May, monthly active users (MAU) of Korea's used-goods marketplace apps were led by Karrot Market with 21.27 million in first place, followed by Bungaejangter with 4.75 million in second and Junggonara with 1.65 million in third. In effect, karrot accounts for nearly 80% of the market, and the used-goods marketplace has solidified into a "one strong, two mid-tier" structure.
The used-goods marketplace, which saw explosive growth during the pandemic, slowed sharply after the shift to endemic conditions. As outdoor activities and offline spending increased, the business environment contracted, and accordingly, Karrot posted an operating loss of 9.2 billion won in 2023, while Bungaejangter recorded a deficit of 21.6 billion won. Although transaction volume is recovering as demand for used goods increases amid the recent economic slump, securing a stable revenue model rather than expanding user numbers has emerged as a common task for both companies.
Since 2021, Karrot Market has ramped up a revenue model centered on local advertising and focused on the ad business. In 2024, revenue rose 48% year over year to 189.1 billion won, and operating profit increased 3.8 times to 37.6 billion won, marking a second consecutive year in the black. Ad revenue accounts for more than 99% of the total, with the number of advertisers up 37% and the number of ad placements up 52%. In the first quarter of this year, it also maintained growth with 16.4 billion won in operating profit and 57.8 billion won in revenue.
However, concerns about a growth stall are mounting. Based on 6,577 regions nationwide, cumulative sign-ups have reached 43 million, effectively already capturing most domestic smartphone users. Analysts say additional revenue expansion is limited under an ad-centric structure.
In response, Karrot is accelerating overseas expansion into North America and Japan, backed by surplus funds. Since establishing a Canadian subsidiary in 2021, it has invested 71.7 billion won to target the North American market and added 36.1 billion won this year alone. CEO Kim Yong-hyun is overseeing the business on the ground, introducing AI-based features such as "Carrot Vision" and a chatbot service. However, the Canadian and Japanese subsidiaries posted net losses of 22 billion won and 2.5 billion won, respectively, last year, indicating overseas results have yet to hit their stride.
By contrast, Bungaejangter has pivoted to a monetization strategy centered on payment fees. Since private equity fund Praxis Capital Partners acquired management control for 150 billion won in 2020, Bungaejangter's revenue has more than tripled, from 14 billion won to 44.9 billion won in 2024. Yet last year's operating loss reached 19.6 billion won. Starting in September this year, it raised seller payment fees from 3.5% to 6% and imposed a separate 5%–10% fee on "Pro Stores" for professional sellers, seeking to diversify revenue.
However, the fee hikes triggered user backlash. On internet communities, complaints continued that "only the burden on sellers has increased," and some users are moving to other platforms. In the industry, some also suggest that the private equity fund, approaching its investment exit, is placing emphasis on short-term performance improvement.
Regarding this, a Bungaejangter official said, "We are taking the lead in expanding investment in technology and infrastructure to enhance platform trust," adding, "As part of that, we have mandated safe payments for the first time in the industry and are providing an authentication service for genuine and counterfeit goods (Bungae Care)." The official continued, "We are continuing to strengthen trust-based services through patent-level technological upgrades and infrastructure investment," and added, "The fee adjustment is not simply about strengthening profitability but part of expanded investment to create a safe and transparent transaction environment."
Naver subsidiary Junggonara also recently introduced seller fees and strengthened its authenticity verification and safe payment system, moving to become a "trust-based transaction platform." In 2024, revenue rose 6.1% year over year to 11.8 billion won, and operating loss came to 2.1 billion won. It is clear that an industry once centered on free transactions is rapidly shifting to transaction-based revenue models.
As Korea's used-goods marketplace reaches saturation, Karrot Market is running away with an advertising-centered, stable revenue model, while competitors are turning toward monetization based on payments and fees.
A retail industry official said, "karrot has effectively established a dominant revenue structure in Korea, and other platforms are belatedly trying to shore up profitability through a fee model." The official added, "Future market realignment depends on whether the ad-centered model works globally or on how much the safe payment model can secure user trust."