SOURCE: Gmarket

January 11, 2008 08:20 ET

Gmarket Reports 4Q07 GMV of US$1.04 Billion, Full-Year GMV of US$3.47 Billion

SEOUL, SOUTH KOREA--(Marketwire - January 11, 2008) - Gmarket Inc. (NASDAQ: GMKT) ("Gmarket") announced today that its gross merchandise value ("GMV") totaled 970.0 billion Won (approx. US$1.04 billion) for the fourth quarter of 2007, representing a 42% increase over the fourth quarter of 2006. Gmarket's full-year 2007 GMV totaled 3.25 trillion Won (approx. US$3.47 billion), representing a 43% increase over full-year 2006. GMV is defined as the total value of all items sold on an e-commerce marketplace.

            4Q 2007  4Q 2006   YoY   QoQ      2007 Total  2006 Total  YoY
            -------  -------   ---   ---      ----------  ----------  ---
             970.0    682.4                      3.25        2.27
GMV (Won)   billion  billion   +42%  +25%      trillion    trillion   +43%
            -------  -------   ---   ---      ----------  ----------  ---
              1.04    729.2                      3.47        2.42
GMV (US$)   billion  million   +42%  +25%       billion     billion   +43%
            -------  -------   ---   ---      ----------  ----------  ---

The Company's top three product categories in terms of percentage of fourth quarter 2007 GMV were as follows: (1) clothing and accessories: 33% (compared to 28% in the previous quarter and 42% in fourth quarter 2006), (2) computers and electronics: 32% (compared to 35% in the previous quarter and 27% in fourth quarter 2006), and (3) food and child care products: 13% (compared to 14% in the previous quarter and 12% in fourth quarter 2006).

"We are pleased with our fourth quarter 2007 GMV, as we surpassed the US$1 billion quarterly GMV milestone for the first time," said Duckjun (D.J.) Lee, Chief Financial Officer of Gmarket. "The fourth quarter presented a highly competitive environment, especially pricing pressure in the computers and electronics categories, which may adversely affect our profitability from these categories in the fourth quarter. Nonetheless, we expect our fourth quarter net income to reach an all-time high, and we are heading into 2008 with strong momentum."

The Company plans to report its fourth quarter 2007 results and to hold a conference call with investors and analysts to discuss the fourth quarter 2007 results after the NASDAQ stock market closes on February 27, 2008 in New York (Thursday, February 28, 2008 in Seoul).

Notes: (1) The Dollar amounts provided in this release are based on the exchange rate of 935.80 Won to US$1.00, which is the noon buying rate in effect on December 31, 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.

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.

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