[비즈한국] Bunjang, a secondhand trading platform, is facing controversy after announcing an increase in transaction fees just one year after their initial introduction. Last year, Bunjang faced a decline in users after making "safe payment" mandatory and imposing fees on sellers. Industry insiders interpret the company's decision to push ahead with the hike, despite anticipating user backlash, as a sign of their desperate financial situation.
Seller Fees Increased from 3.5% to 6%
The secondhand trading platform Bunjang has announced it will increase its seller fees effective September 17. The current 3.5% fee for general shops (individual sellers) will rise to 6%, while fees for "Pro Shops" (professional sellers) will increase from the existing 5% to a range of 6–10% (depending on the category).
Along with the fee adjustments, Bunjang is introducing its own proprietary currency, "Bungae Money." Bunjang explained that they launched this new payment and deposit method to enhance transaction convenience and provide more benefits to sellers. A Bunjang official explained, "While we are considering expanding the use cases for Bungae Money, it can currently only be used to purchase items within the Bunjang platform."
To encourage sellers to use Bungae Money, Bunjang has also dangled a fee reduction incentive. If a seller completes a transaction and chooses to receive their settlement funds via Bungae Money, they receive an additional 2.5% of the item's price back. For example, if an item is sold for 100,000 KRW, a 6% fee (6,000 KRW) is deducted, resulting in a settlement of 94,000 KRW. However, if the seller selects the Bungae Money method, they receive the 6,000 KRW fee deduction but are granted an additional 2,500 KRW benefit, bringing the total settlement to 96,500 KRW.
However, users are pointing out that the additional benefit of Bungae Money is merely a gimmick. This is because the additional benefit amount disappears when withdrawing the funds as cash. One user criticized the policy, stating, "Ultimately, because the benefit amount is excluded when you withdraw the sales proceeds, the policy is meaningless. Isn't this just a play on words?"
There is also deep distrust among users. With recent corporate rehabilitation filings by retail firms like TMON, WeMakePrice (Ti-Me-P), and Balaan, users have become highly sensitive to using proprietary platform currencies. One user commented, "I've seen companies go under overnight, so my anxiety is high. It’s not like we don’t know Bunjang is in the red—how many people would really want to tie up their cash inside a platform?"
The industry views the introduction of Bungae Money as a strategic move that goes beyond simply enhancing convenience. The interpretation is that the primary goal is to mitigate seller backlash from the fee hike while simultaneously locking in funds within the platform.
Lee Jong-woo, a professor of business administration at Ajou University, explained, "If a seller receives their proceeds in Bungae Money, they are likely to spend it back on Bunjang, which helps prevent user churn. Furthermore, as the transaction funds remain deposited within the platform, it is possible for the company to generate interest income."
In response, Bunjang clarified, "Bungae Money is structured to be separately issued and stored by a third-party affiliated financial institution (an electronic financial service provider), making it a safe system that users can rely on for their transactions. It is not a method of 'pre-charging' funds; rather, it is a form of receiving settlement proceeds held in a third-party escrow account, so Bunjang cannot manage the funds directly." Regarding consumer distrust of platform currencies, they emphasized, "The TMON/WeMakePrice crisis, which involved prepaid balance issues, is different from Bungae Money, which is a form of settlement payment. Bungae Money is held in a secure escrow account, not in a Bunjang-owned account."
Persistent Deficits, Desperate Need for Improved Profitability
Bunjang began charging fees to sellers last August when it made "Safe Payment," a system based on transaction escrow, mandatory. During this process, many users left the platform. According to Mobile Index by IGAWorks, a data tech company, the monthly active users (MAU) of the Bunjang app, which stood at around 2.96 million in August last year, fell for three consecutive months to 2.84 million in September, 2.82 million in October, and 2.80 million in November.
While there was a recovery trend starting at the end of last year, reaching 2.95 million monthly users in July this year—returning to the level of August last year—there are concerns within the industry that Bunjang, having only just recovered its user base, might see another wave of departures following the fee hike.
Bunjang’s decision to risk user attrition by hiking fees stems from an urgent need to improve profitability. Back in 2020, when the private equity firm Praxis Capital Partners (Praxis) acquired management rights, Bunjang was considered the only profitable secondhand trading platform in Korea. However, deficits have persisted since the acquisition. In 2020, Bunjang reported an operating loss of 13.5 billion KRW, which ballooned to 39.3 billion KRW in 2021.
Although Bunjang stated last year that it would make "this year the first year of turning a profit," it failed to escape the deficit. While 2024 revenue reached 44.9 billion KRW, a 31.5% increase from the previous year, the company still recorded an operating loss of 19.6 billion KRW.
However, the effect of charging fees is evident. Last year, transaction fee revenue accounted for 22.6 billion KRW, or 50.4% of Bunjang's total revenue. The deficit also narrowed by 2 billion KRW compared to the previous year (21.6 billion KRW). This marks the smallest loss since Praxis acquired management rights, which is why the latest fee hike is interpreted as a strategic move aiming for a turnaround.
Nevertheless, the market situation is tough. Recently, the resale platform KREAM has launched full-scale secondhand luxury trading, and Musinsa has also introduced a fashion resale service, intensifying competition. The growth of latecomers is also steep. According to Mobile Index, the MAU of the fashion re-commerce platform Charan increased by 268% from 38,000 last year to 140,000 last month, and Fruits Family also grew by 166% from 18,000 to 48,000 during the same period.
Professor Lee Jong-woo stated, "Bunjang is in a position where it is taking a significant risk. The difference between a 3% fee and a 6% fee is substantial. While profitability may improve, users might leave in such numbers that operations become difficult. Bunjang must have been aware of these concerns, so pushing forward with the fee hike implies that they are in a situation where improving profitability is absolutely critical."
A Bunjang official explained, "We are prioritizing the resolution of various problems that arise during secondhand transactions. In particular, since the introduction of safe payment for all transactions, the number of transaction fraud cases on the platform has decreased by over 92%, and our efforts to increase transaction stability are yielding visible results. Rather than aiming for an immediate profit turnaround, we are focusing on intensive investment in service advancement and striving for innovation to revitalize a sustainable re-commerce market."