[비즈한국] The settlement delay crisis at the luxury platform 'Balaan' is escalating rapidly. On the 25th, police were called to the Balaan headquarters as sellers gathered to protest, and staff members have since shifted to working from home. Anxiety is mounting among sellers, with rumors circulating that 'Balaan is preparing for corporate rehabilitation.'
Balaan: “Delays occurred while correcting overpaid settlements”
A settlement delay crisis has struck the luxury platform Balaan. March 24th was the scheduled date for Balaan to pay settlements to its partner vendors, but at 5:00 PM that day, the company announced that “settlement payments scheduled for the 24th are temporarily suspended until the review process is completed.”
Balaan explained that they discovered errors while reviewing past settlement records, and the time required for re-calculation caused the delay. A Balaan official stated, “During our internal financial verification process, we found areas that were not properly checked regarding settlements. There were cases of overpayment to sellers,” adding, “We are currently meticulously re-examining historical data to rectify this. Consequently, settlement delays were unavoidable.”
Balaan announced that it would provide a new settlement schedule to sellers on the 28th and pay interest on the delayed amounts. However, anxiety among sellers remains high. A seller on the platform, identified as A, expressed concern: “I am owed about 15 million won that was supposed to be paid on the 24th. There is no clear explanation on when they will pay, and they don't respond to emails. Recently, they even took two months of advertising fees in advance. I am extremely worried.”
Another seller added, “I have tens of millions of won tied up, and some sellers are owed hundreds of millions. Since a large portion of my sales came through Balaan, I am very concerned.”
On the 25th, a meeting between the company and sellers at the Balaan headquarters ended in chaos, requiring police intervention. One seller explained, “Balaan arranged a meeting with a small number of businesses, claiming they would provide an explanation regarding the delays. But they just kept reading the same notice over and over. Then they told us we were done and to leave. When voices were raised, staff called the police, and it turned into a mess.”
An industry insider commented, “Since many sellers have already been through the TMON/WeMakePrice and Allets crises, the sentiment regarding Balaan’s situation is one of significantly heightened anxiety.” One seller mentioned, “Some sellers have already consulted with lawyers. It’s reached the point where people are saying we should just go to the office and take whatever office equipment we can find.”
As tensions rose, Balaan transitioned to a company-wide work-from-home policy starting on the 26th. A Balaan representative stated, “It’s not an atmosphere where people can work at the office, so we are working from home. We will likely continue this through the end of the week.”
Rumors of rehabilitation spread among sellers… Balaan insists “Investment attraction continues”
Rumors are also circulating among sellers that Balaan will enter corporate rehabilitation. This follows an incident on the 25th where a seller visiting the headquarters spotted files labeled 'Documents for Rehabilitation' and 'Preparation for Hearing on April 23, 2025' on a legal department staff member's laptop. A photo of the laptop screen taken by the seller has been shared among others, fueling suspicions that Balaan is preparing for rehabilitation.
When Bizhankook asked for confirmation, a company official deflected the question, saying, “We cannot get in touch with the head of the legal department. They joined the company in January. We don’t know if those were personal files or company-related files.” The official added, “This is the first I’ve heard of corporate rehabilitation. If we were at the stage of needing rehabilitation, Silicon2257720 wouldn't have invested in us,” they countered.
Launched in 2015, the luxury platform Balaan grew rapidly during the COVID-19 pandemic, with its corporate value estimated at 300 billion won in 2022. However, as the pandemic subsided and luxury consumption slowed, the company has faced a decline in performance. Balaan is not alone; the growth of the entire luxury platform industry, including MustIt and Trenbe, has stalled, leading to plummeting sales.
Despite this, Balaan has consistently refuted crisis rumors by citing ongoing investment attraction. Last February, the company announced that it had secured 15 billion won in investment from K-beauty distributor Silicon2. The deal involves an initial 7.5 billion won, with the remaining 7.5 billion won contingent on meeting certain conditions. Reportedly, conditions for the second round of investment include achieving a direct purchase sales ratio of over 50% for two consecutive months starting this November, as well as reaching monthly operating profitability.
As concerns over settlements grow across the luxury platform industry due to Balaan’s situation, other platforms are emphasizing their financial stability. Trenbe stated, “According to the 2024 closing financial statements, we hold approximately 8 billion won in current assets, and after subtracting 3.5 billion won in partner settlement liabilities, we have about 4.5 billion won in cash-equivalent safe assets,” adding that they “have 2.3 times the cash assets needed for pending partner payments.”
Feelway also addressed Balaan’s situation, noting, “It is damaging the trust in luxury platforms,” and announced, “Feelway completely improved its financial structure through new investment in November 2024, fully overcoming capital impairment to establish a solid financial foundation.”
MustIt issued a notice to sellers stating, “We anticipate that many partner companies may face difficulties with cash liquidity due to Balaan’s settlement delays,” and that they would “proceed with early settlement to provide practical help.”
One seller pointed out, “I’ve lost count of how many times I’ve had to stress over whether I’ll get paid. The anxiety surrounding online platforms is becoming too great,” adding, “Doesn’t this inevitably lower consumer trust in the platforms as well? Even if we get our settlements, both sellers and consumers are likely to leave.”