Online secondhand market Bungaejangter attracts new investment

Kim Joo-heon Reporter() | Posted : January 11, 2022, 14:22 | Updated : January 11, 2022, 17:42

[Courtesy of BGZT]

SEOUL -- South Korea's major online peer-to-peer secondhand trade service Bungaejangter has attracted some 82 million won ($68.6 million) in new investment. The investment will be spent on developing an authentication service for luxury items, strengthening payment and delivery services and recruiting more employees.

Data released by Hana Financial Group showed that the domestic secondhand trade market grew from four trillion won in 2008 to 20 trillion won in 2020, with more than 10 million people using secondhand market apps. According to the country's online market research firm Nelsen Koreanclick, 28 percent of secondhand market app users were in their 40s and 22 percent in their 50s.  
 
When the first wave of a coronavirus pandemic erupted in 2020, logistics services based on their one-day delivery system had to shut down from time to time. Because of delays in delivery, consumers favored secondhand trading services to purchase daily supplies. The monthly transaction amount of Bungaejangter's digital wallet service soared from 10 billion won in June 2020 to 33 billion won in December 2020.
 
Bungaejangter said in a statement on January 11 that it has secured some 82 billion won in investment from various companies including Shinhan Financial Group. The secondhand market operator with some 17 million cumulative subscribers achieved about 1.7 trillion won in annual transactions.

The secondhand market operator has acquired the sneakers community called "FootSell" and "S bridge," a used golf equipment platform. In December 2020, Bungaejangter partnered with the mobility service wing of South Korea's web service giant Kakao to deliver items within a few hours using motocycles while people traded secondhand products using parcel delivery services that took a day or two. 
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