Latest news with #Tmon
Korea Herald
25-06-2025
- Business
- Korea Herald
Oasis rescues Tmon in cash deal, eyes e-commerce expansion
Debt-laden e-commerce platform Tmon has found a lifeline in fresh food delivery company Oasis, narrowly avoiding collapse. Most of Tmon's creditors, however, are expected to forgo repayment on more than 1 trillion won ($732 million) in outstanding debt. The Seoul Bankruptcy Court on Tuesday approved the company's rehabilitation plan through a compulsory order, clearing the way for Oasis to move forward with the acquisition. The decision comes 11 months after Tmon's large-scale liquidity crisis emerged in July, prompting court-led rehabilitation proceedings in September. Tmon submitted a debt workout plan last month centered on its acquisition by Oasis, but the proposal was rejected at a creditors' meeting last Friday after falling short of support from commercial creditors, mostly small merchants and consumers. Despite the rejection, the court granted approval, citing that the plan "serves the interests of all stakeholders — including secured and unsecured creditors and employees." The approval was conditional on including protective measures for commercial creditors, as outlined in the plan. Oasis is acquiring Tmon for 11.6 billion won through a full equity purchase via new share issuance. Industry estimates suggest an additional 6.5 billion won will be needed to cover unpaid wages, severance and other outstanding liabilities. The online grocery market is funding the deal entirely in cash. As of the end of last year, Oasis held around 150 billion won in cash and cash equivalents. Its debt-to-equity ratio stood at 42 percent, and its current ratio at 324 percent — figures that point to solid financial health. Oasis, focused on overnight grocery delivery, has grown steadily since launching its online service in 2018. Founded in 2011 as a store-based organic food retailer, it leveraged an expansive producer network to go digital. Last year, it posted 517.1 billion won in revenue and 22.9 billion won in operating profit — up 9 percent and 27 percent, respectively — remaining the only overnight grocery delivery firm to turn an annual profit. The company aims to grow its e-commerce market share through the acquisition. Oasis currently has just 2 million members — a fraction of market leaders Kurly and Coupang, each with over 10 million users. Tmon, which has expanded aggressively through an open-market model, is estimated to have 4 to 5 million active users, potentially more than tripling Oasis's user base. The acquisition is expected to bolster Oasis ahead of its planned initial public offering. The company is owned by Kosdaq-listed tech firm Gaeasoft. Oasis plans to operate Tmon as a separate entity to preserve its brand value, avoiding a physical merger. Tmon will relaunch its marketplace and explore new business models to expand its presence in the fast-delivery sector. Meanwhile, the rehabilitation plan is drawing backlash from creditors, as only 10 billion won of Oasis's acquisition payment will go toward debt repayment — less than 0.8 percent of Tmon's total outstanding debt of approximately 1.2 trillion won. Oasis has pledged to support Tmon's recovery, vowing to implement the industry's lowest commission rates and a next-day settlement system to assist previously affected sellers. It also plans to inject additional funds to cover employee salaries and operating costs.
Korea Herald
13-02-2025
- Business
- Korea Herald
Kakao to launch new AI service with OpenAI this year
Kakao Corp. on Thursday said it plans to launch a new AI-powered service with ChatGPT operator OpenAI later this year, as the Korean messenger giant ramps up its AI push through partnerships to stay ahead in the competitive landscape. During the company's earnings call for the October-December 2024 period, Kakao CEO Chung Shin-a outlined the company's goals and its blueprint for artificial intelligence, including its recently announced high-profile partnership with OpenAI. 'The strategic partnership with OpenAI is not just limited to model-related collaborations, but also includes joint service development between the two companies,' Chung told investors. She emphasized that the firms' mission is to popularize AI, enabling South Korean users to incorporate the technology into their daily lives. Under this mission, the two firms plan to roll out an AI agent that will go beyond the simple question and answer functions and perform highly-personalized and complex tasks across various services. 'We will do our best for users to experience this service within this year,' said Chung, without elaborating on the timing. In addition, Chung said Kakao's new conversational AI service, Kanana, has completed in-house beta tests and is currently working on the final touches to improve functions based on user feedback. She added that Kanana will be open for public beta testing in the first half of this year. The new service will enable multiple users to interact with the AI, such as in group chat settings. Furthermore, Kakao aims to enhance its search capabilities by integrating generative AI across its services. On Thursday, Kakao reported consolidated revenue of 1.95 trillion won for the October-December period last year, down 2 percent on-year. Its operating profit declined 33.7 percent on-year to 106.7 billion won. The company attributed the decline partly to a one-time bad debt expense incurred by its payment subsidiary, Kakao Pay, due to the Tmon incident. The e-commerce platform failed to pay vendors due to a liquidity crisis, forcing Kakao to make refunds to users. A decrease in revenue from its content businesses, including the music, game and story units, also weighed on the firm's overall earnings. As for 2024 overall, Kakao reported an annual revenue of 7.87 trillion won, up 4.2 percent from 2023. Its operating profit increased 6.6 percent on-year to 491.5 billion won.
