Tmax A&C on Brink of Crisis: Financial Woes Halt Employee Salaries Amid Capital Depletion

Tmax A&C Faces Financial Setbacks, Delays Employee Salaries

Tmax A&C Provided

Tmax A&C, a major subsidiary of Tmax Group, has suffered a setback in paying employee salaries due to financial problems.

According to ICT Industry, Tmax A&C, which is in a state of capital loss, could not pay the salaries of about 1,200 employees due this morning.

Tmax A&C said it could not specify the payment date, but was trying to process it as soon as possible.

Tmax A&C is responsible for developing or managing platforms such as Cloud, Artificial Intelligence (AI), Metaverse, and Fintech, and is responsible for developing the super app platform ‘Gaia’. Last year, it recorded sales of 8.84 billion won and an operating loss of 95.78 billion won, and is in a state of capital loss.

Tmax A&C explained that it is difficult to run short-term operating funds due to the huge costs involved in developing a super app.

After the re-acquisition of TmaxSoft by Tmax Group, it is noticed that immediate group support is not available. Last month, Tmax Group spent about 800 billion won to secure about 61% of Tmax Soft, which it sold two years ago.

Tmax A&C has decided to start emergency management from next month along with efforts to secure funds.

We will suspend new recruitment for the time being and introduce an intensive work system. A company-wide cost-cutting plan will also be implemented, including halving corporate card limits, suspending company support for health care centers and fitness facilities, and temporarily suspending the use of refresh (recharge) leave.

An official of Tmax A&C said, “There has been a delay in the payment of salaries due to temporary funding issues, but we are trying to pay as soon as possible and our business is running without a hitch.”