SOURCE: Gmarket Inc.

October 12, 2007 07:54 ET

Gmarket Reports 35% Increase in 3Q07 GMV to US$848 Million

SEOUL, SOUTH KOREA--(Marketwire - October 12, 2007) - Gmarket Inc. (NASDAQ: GMKT) ("Gmarket") announced today that its gross merchandise value ("GMV") totaled 775.6 billion Won (approx. US$848.2 million) for the third quarter of 2007, representing a 35% increase over the third quarter of 2006. GMV is defined as the total value of all items sold on an e-commerce marketplace. The Company plans to report its third quarter 2007 results and to hold a conference call with investors and analysts to discuss the third quarter 2007 results after the NASDAQ stock market closes on November 8, 2007 in New York (Friday, November 9, 2007 in Seoul).

                 3Q 2007          3Q 2006      YoY Change    QoQ Change

GMV (Won)    775.6 billion    573.0 billion      35%          -0.6%

GMV (US$)    848.2 million    626.5 million      35%          -0.6%

The annual Korean thanksgiving holiday ("Chuseok") took place on Tuesday, September 25 this year compared to Friday, October 6 in 2006. This reduced the effective number of online shopping days in third quarter 2007 by approximately four days compared to third quarter 2006. The three-day period including the day before and day after Chuseok are national holidays in Korea, resulting in a significant increase in travel out of Seoul and/or South Korea and in a reduction in business days. Consequently, the Company's GMV during the seven-day period ending with the Chuseok holidays (i.e., September 20~26) was approximately one-third the size of the Company's GMV during the preceding seven-day period (i.e., September 13~19). The Company's GMV during the seven-day period immediately following Chuseok (i.e., September 27~October 4, excluding the additional national holiday that took place on October 3), however, was 8% greater than that of the seven-day period of September 13~19 (i.e., the period immediately preceding the week including the Chuseok holidays).

The Company's top three product categories in terms of percentage of third quarter 2007 GMV were as follows: (1) computers and electronics: 35% (compared to 32% in the previous quarter and 29% in third quarter 2006), (2) clothing and accessories: 28% (compared to 34% in the previous quarter and 38% in third quarter 2006) and (3) food and child care products: 14% (compared to 13% in the previous quarter and 13% in third quarter 2006).

Notes: (1) The Dollar amounts provided in this release are based on the exchange rate of 914.50 Won to US$1.00, which is the noon buying rate in effect on September 30, 2007 as quoted by the Federal Reserve Bank of New York. (2) GMV should not be construed as an alternative to operating income or any other measure of performance determined in accordance with U.S. GAAP. Other companies may determine GMV differently than Gmarket does. (3) The Company has re-classified its clothing and accessories product category to include, among other items, children's clothing and sporting goods apparel in order to be consistent with the categorization utilized by the Korea National Statistical Office. Using the previous categorization, clothing and accessories comprised 25% of the Company's third quarter 2007 GMV (compared to 30% in the previous quarter and 34% in third quarter 2006) and food and child care products comprised 16% of the Company's third quarter 2007 GMV (compared to 15% in both the previous quarter and third quarter 2006).

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