Jungonara Doubles Seller Commission in a Year... Strategy to Boost Valuation?

Seller Commission Raised from 1% to 2.5%

Profitability Drive Amid Second-Half Sale Speculation

Turned a Profit in Q1... Aiming for Annual Surplus

Jungonara will significantly increase seller fees at the end of this month. This comes approximately one year after the company reinstated seller fees in September last year, ending a five-year hiatus. As discussions of a potential sale of management rights in the second half of this year are surfacing in the investment industry, some interpret this move as a strategic effort to enhance profitability and raise the company’s valuation.

According to industry sources on July 9, starting from the 28th, Jungonara will raise its Safe Payment seller fee from 1% to 2.5% of the sale amount. However, products priced at 20,000 won or less will be exempt from the fee. Currently, Jungonara’s Safe Payment fee is 1% for sellers and 3.5% for buyers.

This is the first increase in seller fees in about a year. In September last year, Jungonara revised the Safe Payment terms to reinstate seller fees for the first time in five years. The rate, which had been maintained at 1%, will now rise to 2.5% with this latest increase—a 2.5-fold jump compared to the previous rate.

Industry insiders suggest that this fee hike is closely linked to the ongoing sales process. According to investment banking sources, consortia including Eugene Asset Management, Opus Private Equity, NH Investment & Securities PE, and Lotte Shopping are expected to begin the process of selling Jungonara in the second half of this year. These consortia acquired a 93.9% stake in Jungonara in June 2021, investing approximately 110 billion won. With the first maturity of the fund established for the Jungonara acquisition arriving this year, there is speculation that the formal merger and acquisition (M&A) process will begin in earnest.

The recent appointment of a financial expert is also seen in this context. Last month, Jungonara appointed Choi Choong-gyu, a former accountant, as its new Chief Financial Officer (CFO). With the departure of former CFO Kang Namseok in 2024, the CFO position had been vacant for two years until this recent appointment.

Although Jungonara has been working to reduce its operating losses, its deficit widened again last year. The operating loss grew from 1.2 billion won in 2021 to 9.5 billion won in 2022, then decreased to 3.8 billion won in 2023 and further to 2.1 billion won in 2024. In 2025, the loss slightly increased to 2.8 billion won.

However, starting this year, Jungonara has surpassed its monthly break-even point and achieved a turnaround to profitability in the first quarter. The company is also expected to post a profit in the second quarter. Jungonara believes that the effects of its "Safe Guarantee Project," which was launched in July last year to strengthen its payment system and compensation program and reduce fraud, are now materializing. The company aims to achieve annual operating profit through this fee increase and improved cost efficiency.

This content was produced with the assistance of AI translation services.