[THE INVESTOR] Korean e-commerce firm WeMakePrice has decided to hire about 50 new merchandisers in a strategic move to put more focus on its original social commerce business, according to industry sources on Feb. 23.
The decision comes after the firm sought to transform from a social commerce firm that sells selected items to an open market operator for more profits like its bigger rivals Coupang and Ticket Monster.
Sources say huge costs may be the key reason why the firm ditched the plans. Under the current laws, a firm should set up new systems, including payment gate, to get the business license as an open market operator. Coupang, the market leader, is still losing money despite its record earnings.
A WeMakePrice spokesperson confirmed the decision, adding that diverse options are still on the table considering the ever-evolving e-commerce market.
The three e-commerce firms have continued losing money amid fierce competition to dominate the burgeoning market. In 2016, Coupang suffered an operating loss of 565 billion won, while Ticket Monster and WeMakePrice reported 565 billion won and 158 billion won in losses, respectively.
By Song Seung-hyun (firstname.lastname@example.org)