SOURCE: Gmarket Inc.

November 13, 2007 07:47 ET

Gmarket Inc. Issues Statement

SEOUL, SOUTH KOREA--(Marketwire - November 13, 2007) - Gmarket Inc. (NASDAQ: GMKT) ("Gmarket") today issued an update regarding the previously announced investigation of Gmarket by the Korea Fair Trade Commission ("KFTC"). While Gmarket has not yet received any formal documentation of the KFTC's decision, Gmarket has obtained from its Korean legal counsel a copy of the press release issued by the KFTC concerning this matter. Although the press release is not considered to be an official documentation of the KFTC's decision, the decision as summarized in the press release will, in principle, be reflected in the official documentation to be issued by the KFTC. The press release states that the KFTC has completed its investigation and determined Gmarket (i) is a market dominant player, as such term is defined in the Monopoly Regulation and Fair Trade Act of Korea, and (ii) would be imposed a surcharge in the amount of 135,000,000 Won (approximately US$150,000) for committing unfair trade practices as a market dominant player.

The KFTC's investigation stemmed from a claim raised by one of Gmarket's competitors involving the alleged unfair trade practices by Gmarket. The claim alleged that Gmarket provided incentives related to marketing and advertising to a small number of its sellers in order to coerce such sellers not to list their products on other e-commerce marketplaces in Korea.

Gmarket will continue to fully cooperate with the KFTC to ensure a timely and comprehensive resolution to this matter and will evaluate appeals if and when appropriate. Gmarket expects to pay the surcharge prior to the deadline as stated in the formal documentation of the KFTC's decision to be issued in the upcoming weeks, as under Korean law, the payment due date of such surcharge is not delayed by the appeals process. Gmarket will also meet any other conditions set forth in the KFTC's order.

About Gmarket

Gmarket Inc. is a leading retail e-commerce marketplace in Korea, offering buyers a wide selection of products at competitive prices and sellers a comprehensive and flexible sales solution. Gmarket's e-commerce marketplace is highly scalable and facilitates the sale of products in small or large quantities to a large number of potential buyers in a convenient, cost effective and secure manner. Gmarket's e-commerce marketplace is located at www.gmarket.co.kr.

Safe Harbor Under the Private Securities Litigation Reform Act of 1995

Certain statements in this filing on Form 6-K may include, in addition to historical information, "forward-looking statements" within the meaning of the "safe-harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," or "continue" or the negative thereof or other similar words, although not all forward-looking statements will contain these words. These forward-looking statements are based on the Company's current assumptions, expectations and projections about future events. All forward-looking statements involve risks and uncertainties that may cause the Company's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements, including, but not limited to, the Company's ability to diversify revenues; the Company's ability to compete effectively in a highly competitive industry; the Company's ability to anticipate and access technological developments in the Company's industry; the Company's ability to recruit and retain quality employees as the Company grows; the Company's ability to implement the Company's growth strategies; and economic and political conditions in and outside of Korea. Investors should consider the information contained in the Company's submissions and filings with the SEC, including the Company's registration statement on Form F-1, as amended, together with such other documents as the Company may submit to or file with the SEC from time to time, including on Form 6-K. The forward-looking statements speak only as of this filing on Form 6-K and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances.

Contact Information

  • Contacts

    Paul J. Lee
    Gmarket Inc.
    +82-2-3016-4372
    Email Contact

    In the U.S.
    David Pasquale
    The Ruth Group
    +1-646-536-7006
    Email Contact