25.11.10.Today News : Wemakeprice Declared Bankrupt: 100,000 Victims Left with Nothing

Wemakeprice Declared Bankrupt: 100,000 Victims Left with Nothing

📍Court Ends 1-Year Rehabilitation Process; Victims Unable to Recover 580 Billion KRW

South Korea’s first-generation social commerce company, Wemakeprice, has officially been declared bankrupt. After 16 months of rehabilitation procedures following a large-scale non-payment scandal, about 100,000 victims are now facing complete financial loss.

Wemakeprice, South Korea's first-generation social commerce company, has finally been declared bankrupt by the court.

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🔹 Bankruptcy Declared After 16-Month Rehabilitation Attempt
The Seoul Bankruptcy Court’s 3rd Division declared Wemakeprice bankrupt on the 10th, ruling that its liquidation value (₩13.4 billion) outweighed its going-concern value (₩-223.4 billion). As a result, creditors and consumers owed roughly ₩400 billion in unsettled payments are unlikely to recover their funds.

Attorney Lim Dae-seop was appointed as the bankruptcy trustee. Creditors have until January 6 to file claims, and the creditors’ meeting is scheduled for January 27 at the Seoul Bankruptcy Court.

🔹 Failed M&A Attempt Seals Company’s Fate
Wemakeprice pursued an M&A before court approval during its rehabilitation but failed to find a buyer. The court had already noted in September that the company’s liquidation value exceeded its ongoing business value and thus terminated the rehabilitation process. With no appeal filed, the bankruptcy became final.

🔹 Victims’ Committee Condemns “Death Sentence Without Relief”
The Emergency Committee for Victims (Black Umbrella) expressed outrage, calling the ruling “a death sentence for over 100,000 victims.” The committee criticized both the court and government for neglecting victims’ protection and requested a special law to prevent future online commerce fraud.

Their appeal for an extension of rehabilitation was dismissed after they failed to pay the ₩3 billion deposit required by the court. The committee pledged to publish a white paper and establish a new organization to advocate for small business owners and consumers.

🔹 TMON Recovers After Oasis Acquisition
By contrast, TMON, another e-commerce platform that faced a similar crisis, was acquired by Oasis Market and repaid 96.5% of its debts. It has since completed rehabilitation and is preparing to relaunch operations. Wemakeprice’s collapse, however, marks the symbolic end of South Korea’s early social commerce era.

🔹 Massive Losses and Limited Compensation
Wemakeprice’s latest financial records show ₩48.6 billion in assets against ₩446.2 billion in liabilities. Given that wages, severance pay, and tax claims have priority, ordinary creditors are expected to receive virtually nothing.

🔹 Broader Implications for Online Platform Regulation
Experts say the Wemakeprice case underscores systemic weaknesses in Korea’s digital commerce regulation. Without stronger oversight or consumer protection mechanisms, they warn, similar cases could easily recur. The victims’ committee called for urgent institutional reforms, emphasizing that “the law has failed to keep pace with the digital economy.”

One-line summary : Wemakeprice has been declared bankrupt, leaving more than 100,000 victims with no compensation.