- Court orders Qoo10’s liquidation over S$72.4 million debt default
- Platform faces dual-nation fraud investigations totaling 1.4 trillion won
- Crisis reveals significant corporate governance failures and vendor impacts
Massive Default Triggers Shutdown
Singapore’s High Court orders e-commerce platform Qoo10’s liquidation following claims of unpaid debts totaling S$72.4 million to Korea Culture Promotion (KCP).
AAG Corporate Advisory appointees take control amid allegations of widespread vendor payment defaults and subsidiary bankruptcies.
Multiple Investigations Unfold
The platform faces concurrent investigations in Singapore and South Korea. Korean authorities probe potential fraud and embezzlement worth 1.4 trillion won, targeting CEO Ku Young-bae and subsidiaries.
Singapore authorities suspended Qoo10’s payment services in September, launching police investigations into vendor payment delays.
Corporate Governance Concerns
Serious management issues emerge with mass board resignations leaving only CEO Ku, 90% staff reduction, and disputed authorization of financial guarantees.
The crisis impacts multiple stakeholders, including six additional creditors owed over S$3.26 million, highlighting broader implications for e-commerce trust in Southeast Asia.
