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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Genesis BBQ, the South Korean operator of the popular chicken franchise BBQ, is reportedly considering acquiring Wemakeprice (WMP), an online shopping platform currently undergoing court-led rehabilitation proceedings.
According to industry sources on Tuesday, BBQ submitted a Letter of Intent (LOI) to Wemakeprice last week. The company has since received internal due diligence documents from Ernst & Young Hanyoung (EY Hanyoung), which is managing the sale. While BBQ is reviewing the materials, it emphasized that the consideration is still in very early stages and no in-depth evaluations have been made.
EY Hanyoung is handling the sale of both Wemakeprice and Tmon, another troubled e-commerce firm. Oasis, a Korean fresh food early-morning delivery company, was recently selected as a conditional preferred bidder for Tmon, leading to the separate sale of the two platforms. BBQ is now reviewing the potential acquisition of Wemakeprice as a part of its broader strategy to diversify its business portfolio.
If the acquisition goes through, BBQ plans to assess how the Wemakeprice platform can be integrated into its operations and at what cost. Industry insiders estimate the acquisition price could fall within the 10 billion won range (approximately $7.5 million USD).
Meanwhile, a separate legal case involving current and former Wemakeprice and Tmon executives continues to unfold. In the first court hearing held Tuesday at the Seoul Central District Court, Qoo10 CEO Koo Young-bae and others denied charges related to embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.
Prosecutors allege that Koo, Wemakeprice CEO Ryu Hwa-hyun, and Tmon CEO Ryu Kwang-jin conspired to misappropriate approximately 1.85 trillion won ($1.4 billion USD) in unpaid settlement funds meant for sellers. They also allegedly embezzled around 100 billion won ($75 million USD) from affiliated companies under the guise of loans or consulting fees.
While the executives expressed regret toward affected victims in court, they denied the charges. The scandal has left an estimated 530,000 individuals—comprising 470,000 buyers and 56,000 sellers—with combined damages totaling around 1.5 trillion won ($1.1 billion USD) since the payment default crisis erupted in late July 2023.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
