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Controversy Over TraxLogis’s Move to Collect Logistics Fees from Merchants Unpaid by Tmon and WeMakePrice

[비즈한국] TraxLogis (formerly QXpress), which has been distancing itself from Qoo10, is facing growing controversy for initiating lawsuits to collect logistics fees from sellers affected by the Tmon-WeMakePrice (T-Wep) crisis. TraxLogis is the re-branded entity of QXpress, the logistics subsidiary of Qoo10, which was identified as a primary cause of the T-Wep crisis. While the company claims its relationship with Qoo10 has been severed, affected sellers are criticizing it for prioritizing debt collection while ignoring questions regarding its responsibility.

“We didn’t even get paid, yet…” Victims sigh

“My unpaid settlement from Tmon amounted to about 500 million won. With the repayment rate set at 0.76%, the actual amount I received was barely over 3 million won. In reality, I haven’t recovered my settlement funds at all, yet QXpress, a former Qoo10 affiliate, changed its name and sent a certified letter demanding payment of tens of millions of won in logistics fees.”

Merchant 'A' used QXpress, a Qoo10 Group logistics subsidiary, while selling goods on Tmon. Then the T-Wep crisis hit, and A received almost none of the hundreds of millions of won owed by Tmon. Cash flow was blocked, and the business suffered a massive blow. While barely keeping the company afloat amidst financial difficulties, A recently received an unexpected document from TraxLogis: a certified letter demanding payment for logistics fees.

A said, “I used the service for about three months before the T-Wep crisis, and they billed me about 50 million won in logistics fees for that period. I acknowledge these are costs I am contractually obligated to pay, and I’m not refusing to pay,” adding, “However, I am angry at their behavior: cutting ties of responsibility by changing their name and then launching lawsuits against victims on the verge of bankruptcy just as public interest has faded.”

QXpress is a key Qoo10 affiliate identified as a major cause of the T-Wep crisis. Industry analysts suggest that Qoo10 CEO Ku Young-bae aggressively acquired Tmon and WeMakePrice to pave the way for QXpress’s NASDAQ listing, and this expansion strategy ultimately triggered the crisis.

Following the T-Wep crisis, QXpress moved quickly to cut ties with Qoo10. In July 2024, CEO Ku Young-bae resigned, and in October of the same year, the company changed its name to 'TraxLogis Korea.' The ownership structure, once centered on Qoo10, has also changed. With financial investors (FI) acquiring management rights, TraxLogis is now restructured under the control of private equity funds (PEF) and strategic investors.

However, it is difficult to say that the management composition has completely disconnected from the QXpress era. It has been confirmed that the current leaders of TraxLogis, CEOs Kim Yang-hoon and Noh Hyun-seok, have served as internal director and auditor, respectively, since the days of QXpress. In essence, the management team from the QXpress era remains in place, responsible for running TraxLogis.

In response, TraxLogis explained, “The core change is not in management, but in the shareholder structure,” adding, “While Qoo10 used to be the major shareholder, the ownership structure has since been changed.”

“We are also suffering great losses,” in a state of complete capital erosion

TraxLogis, having distanced itself from Qoo10, had reportedly refrained from billing logistics fees to affected sellers. This was interpreted as a realistic decision—recognizing the difficulty of demanding extra costs when settlements weren't even being paid—combined with concerns over public sentiment.

However, the tide has recently turned. According to T-Wep victims, certified letters began to be sent out last year. Cases leading to payment order procedures have also been confirmed. While some affected sellers requested adjustments to the amounts due to financial deterioration caused by the T-Wep non-payments, these requests were reportedly rejected.

A representative from a T-Wep victims' group said, “Reports of receiving certified letters regarding logistics fees continue to come in. I understand that lawsuits are even being pursued this year,” adding, “There were concerns about this issue from the early stages of the crisis, and some suggested that logistics fee collection should be suspended or limited. However, victims at the time lacked the capacity to respond, so it didn't lead to any practical action.”

One victimized seller mentioned, “I feel that the payment order method is particularly vicious. A payment order is a procedure that becomes final if you do not file an objection within 14 days, which can lead to compulsory execution or bank account garnishment,” adding, “I wonder if they intentionally chose this method knowing that if people fail to check documents on time or are slow to respond, it can proceed directly to execution.”

TraxLogis stated, “Because the company is also suffering heavy losses due to the Qoo10-related crisis, we are currently making self-rescue efforts.” They further explained, “The lawsuits are part of that same context. It is a procedure to recover amounts that were not paid despite the service being provided for a significant period,” adding, “We are in a situation where we are collecting receivables just as we are settling our own debts.”

Industry experts point to the company’s worsening financial health as the reason TraxLogis has moved to collect receivables from affected sellers. According to their audit report, TraxLogis Korea’s 2024 operating loss was approximately 27.9 billion won, up from the previous year (approximately 15.8 billion won), and its net loss reached approximately 54 billion won. As of the end of 2024, total liabilities amounted to approximately 267.1 billion won, exceeding assets (approximately 189.8 billion won), putting the company in a state of complete capital erosion. The audit report also stated that there is “significant doubt regarding the company’s ability to continue as a going concern.”

Amidst increasing financial pressure, TraxLogis had pinned its hopes on attracting outside investment, but no actual results have been confirmed. The company had mentioned the possibility of attracting 30 billion won in investment last year, but has provided no specific explanation regarding whether the deal was closed.

Concurrently, there are signs of cost-cutting measures. It is known that TraxLogis is planning to vacate the office space it has used since its QXpress days. As the number of employees, which exceeded 200 as of July 2024, has recently dropped to around 80, some interpret this as a move to relocate to a smaller office space. The current office’s monthly rent of over 16 million won is also cited as a burden on fixed costs.

TraxLogis had expressed an intention to deliver a separate official statement regarding the lawsuits, but has not provided any further response since then.