Gmarket (EBGMY) 6-K Gmarket Reports Second Quarter 2007 Financial Results

Exhibit 99.1

Gmarket Reports Second Quarter 2007 Financial Results

•2Q07 revenues increase 51% to $60.3 million from $40.0 million in 2Q06

•Diluted EPS increases 178% to $0.18 from $0.07 in 2Q06

Seoul, South Korea, August 2, 2007 — Gmarket Inc. (NASDAQ: GMKT) (“Gmarket”) announced today its financial and operating results for the second quarter ended June 30, 2007.

Gmarket reported total revenues of $60.3 million (Won 55.6 billion) for the second quarter of 2007, representing a 51% increase from total revenues of $40.0 million (Won 36.9 billion) for the second quarter of 2006.

The Company’s gross merchandise value (“GMV”), which represents the total value of all items sold on Gmarket’s website, increased by 43% to $846.6 million (Won 780.0 billion) for the second quarter of 2007 compared to $590.2 million (Won 543.8 billion) for the same period in 2006. Transaction fee revenues for the second quarter of 2007 were $34.9 million (Won 32.1 billion), representing a 34% increase from $26.1 million (Won 24.0 billion) for the second quarter in 2006. Advertising and other non-transaction revenues for the second quarter of 2007 were $25.4 million (Won 23.4 billion), representing a 82% increase from $14.0 million (Won 12.9 billion) for the same period in 2006.

Operating income for the second quarter of 2007 was $8.2 million (Won 7.6 billion), representing a 214% increase from $2.6 million (Won 2.4 billion) for the same period in 2006.

Net income for the second quarter of 2007 was $9.1 million (Won 8.4 billion), representing a 215% increase from $2.9 million (Won 2.7 billion) for the same period in 2006. Earnings per diluted share for the second quarter of 2007 increased to $0.18 (Won 167), up from $0.07 (Won 60) for the same period in 2006.

“In the second quarter, we focused on increasing our market leadership in our core categories, developing and expanding our smaller categories and continuing to strengthen our brand image and user loyalty,” said Young Bae Ku, Chief Executive Officer of Gmarket. “We are pleased with our second quarter financial performance, which included strong growth in our non-transaction revenue.”

During the second quarter of 2007, the Company’s registered user base grew to approximately 12.4 million from 11.8 million registered users at the end of the first quarter of 2007. In addition, the Company averaged 17.6 million monthly unique visitors in the second quarter of 2007, compared to 16.5 million unique visitors during the second quarter of 2006.

The Company reported $12.9 million (Won 11.9 billion) of cash provided by operating activities for the second quarter of 2007 and finished the quarter with $206.6 million (Won 190.4 billion) in cash, cash equivalents and short term deposits and no debt.

Gmarket maintains its expectation that GMV for full year 2007 will range from $3.4 billion (Won 3.1 trillion) to $3.8 billion (Won 3.5 trillion).

Investor Conference Call / Webcast Details

The Company’s management will review detailed second quarter 2007 results on Wednesday, August 1, 2007 at 6:00 p.m. U.S. Eastern Time (7:00 a.m., August 2, 2007 in Seoul, South Korea). A live webcast of the conference call will be available on Gmarket’s website at www.gmarket.co.kr/IR/.

Dial-in details for the conference call are as follows:

US: +1 617 614 3472
Hong Kong: +852 3002 1672
Singapore: +65 6823 2164
U.K.: +44 (0) 207 365 8426
Korea: +82 00 308 13 1153

Password for all regions: Gmarket

A replay of the call will be available on August 1, 2007 at 9:00 p.m. U.S. Eastern Time (10:00 a.m., August 2, 2007 in Seoul, South Korea) through midnight on August 8, 2007 U.S. Eastern Time (1:00 p.m, August 9, 2007 in Seoul, South Korea) at www.gmarket.co.kr/IR/ and by telephone at +1 617 801 6888, with passcode 32272868.

Notes:(1) The Dollar amounts provided in this release are based on an exchange rate of Won 921.30 to US$1.00, which is the noon buying rate in effect on June 30, 2007 as quoted by the Federal Reserve Bank of New York. (2) GMV should not be construed as an alternative to revenues or any other measure of performance determined in accordance with U.S. GAAP. Other companies may determine GMV in a different manner than Gmarket does.

About Gmarket

Gmarket Inc. is a leading retail e-commerce marketplace in Korea, offering buyers a wide selection of products at competitive prices and sellers a comprehensive and flexible sales solution. Gmarket’s e-commerce marketplace is highly scalable and facilitates the sale of products in small or large quantities to a large number of potential buyers in a convenient, cost effective and secure manner. Gmarket’s e-commerce marketplace is located at www.gmarket.co.kr.

Safe Harbor Under the Private Securities Litigation Reform Act of 1995

Certain statements in this filing on Form 6-K may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements will contain these words. These forward-looking

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statements are based on the Company’s current assumptions, expectations and projections about future events. All forward-looking statements involve risks and uncertainties that may cause the Company’s actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements, including, but not limited to, the Company’s ability to diversify revenues; the Company’s ability to compete effectively in a highly competitive industry; the Company’s ability to anticipate and access technological developments in the Company’s industry; the Company’s ability to recruit and retain quality employees as the Company grows; the Company’s ability to implement the Company’s growth strategies; and economic and political conditions in and outside of Korea. Investors should consider the information contained in the Company’s submissions and filings with the SEC, including the Company’s registration statement on Form F-1, as amended, together with such other documents as the Company may submit to or file with the SEC from time to time, including on Form 6-K. The forward-looking statements speak only as of this filing on Form 6-K and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances.

Contacts

Paul J. Lee
Gmarket Inc.
+82-2-3016-4372
plee@gmarket.co.kr

In the U.S.

David Pasquale
The Ruth Group
+1-646-536-7006
dpasquale@theruthgroup.com

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GMARKET INC.
UNAUDITED BALANCE SHEETS

(in millions of Korean Won and in thousands of US dollars)

	December 31,		June 30,		June 30,
	2006		2007		2007
Assets
Current assets:
Cash and cash equivalents		W34,930		W31,314		$33,989
Cash on deposit		134,398		159,051		172,638
Restricted cash		6,400		6,510		7,066
Accounts receivable, net		33,827		39,981		43,397
Current held-to-maturity securities		4,000		4,000		4,342
Other current assets		5,119		9,114		9,892
Total current assets		218,674		249,970		271,324
Long-term financial instruments		5,000		5,000		5,427
Property and equipment, net		19,582		20,292		22,025
Other assets		4,846		4,900		5,317
Total assets		W248,102		W280,162		$304,093
Liabilities and Shareholders’ Equity
Current liabilities:
Amounts payable to sellers		W103,599		W116,174		$126,098
Accounts payable		19,242		19,616		21,292
Deferred revenue and advances		3,532		4,202		4,561
Loyalty program reserves		6,608		7,510		8,151
Withheld value added tax		1,995		3,307		3,589
Other current liabilities		4,859		4,474		4,856
Total current liabilities		139,835		155,283		168,547
Accrued severance benefits		1,397		2,006		2,177
Other liabilities		—		375		408
Total liabilities		141,232		157,664		171,132
Shareholders’ equity:
Common shares		4,951		4,971		5,395
Additional paid-in capital		86,445		87,191		94,639
Retained earnings		15,474		30,336		32,927
Total shareholders’ equity		106,870		122,498		132,961
Total liabilities and shareholders’ equity		W248,102		W280,162		$304,093

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GMARKET INC.
UNAUDITED STATEMENTS OF INCOME

(in millions of Korean Won and thousands of US dollars, except per share data)

	Three Months Ended June 30,									Six Months Ended June 30,
	2006			2007			2007			2006			2007			2007
Revenues:
Transaction fees		W23,996			W32,129			$34,873			W44,013			W62,366			$67,693
Advertising and others		12,865			23,438			25,441			21,185			41,252			44,776
Total revenues		36,861			55,567			60,314			65,198			103,618			112,469
Costs and expenses:
Cost of revenues1)		17,933			29,253			31,753			33,684			54,849			59,534
Sales and marketing1)		13,211			13,111			14,231			22,032			25,358			27,523
General and administrative		3,301			5,612			6,092			5,537			10,371			11,257
Total costs and expenses		34,445			47,976			52,076			61,253			90,578			98,314
Operating Income		2,416			7,591			8,238			3,945			13,040			14,155
Other income (expense):
Interest income		794			2,066			2,243			1,563			4,119			4,471
Others, net		—			(99	)		(107	)		19			(24	)		(28	)
Income before income tax expenses		3,210			9,558			10,374			5,527			17,135			18,598
Income tax expenses		(534	)		(1,141	)		(1,238	)		(922	)		(2,039	)		(2,213	)
Net income		W2,676			W8,417			$9,136			W4,605			W15,096			$16,385
Earning per share — basic2)		W61			W169			$0.18			W106			W304			$0.33
Earning per share — diluted2)		60			167			0.18			103			299			0.32
Weighted average number of shares — basic		32,419,429			49,657,529			49,657,529			31,415,293			49,582,287			49,582,287
Weighted average number of shares — diluted		33,357,934			50,524,504			50,524,504			32,360,836			50,484,722			50,484,722

1)	Cost associated with our integrated delivery service of Won 818 million for the three months and Won 1,275 million for the six months ended June 30, 2006 have been reclassified from sales and marketing to cost of revenues to conform to current period presentation.
2)	The prior period earnings per share figures have been represented to reflect application of the two class method and the dilutive effect of the participating preferred shares. The participating preferred shares were converted into common shares in June 2006.

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GMARKET INC.
UNAUDITED STATEMENTS OF CASH FLOWS

(in millions of Korean Won and thousands of US dollars)

	Three Months Ended June 30,									Six Months Ended June 30,
	2006			2007			2007			2006			2007			2007
Cash flows from operating activities:
Net income		W2,676			W8,417			$9,136			W4,605			W15,096			$16,385
Adjustments
Depreciation and amortization		750			1,534			1,664			1,366			3,005			3,261
Stock-based compensation expense		238			400			434			377			637			691
Provision for bad debt		—			95			103			—			146			159
Provision for severance benefits		175			353			383			419			771			837
Deferred tax assets		(372	)		(573	)		(622	)		(605	)		(1,028	)		(1,115	)
Provision for loyalty program reserves		1,599			1,323			1,436			3,178			2,167			2,352
Others, net		—			118			129			(19	)		114			124
Changes in operating assets and liabilities
Accounts receivable		(3534	)		(5,577	)		(6,053	)		(4,144	)		(6,167	)		(6,693	)
Amounts payable to sellers		3,136			6,881			7,469			(14,656	)		12,575			13,649
Accounts payable		2,370			2,999			3,255			3,223			374			406
Deferred revenue and advances		310			224			243			917			670			727
Other current assets		(1,996	)		(2,393	)		(2,598	)		(1,769	)		(3,128	)		(3,396	)
Other assets		(4	)		—			—			18			9			10
Other current liabilities		1,468			(1,802	)		(1,956	)		1,352			(338	)		(368	)
Payment of accrued severance benefits		(7	)		(136	)		(147	)		(19	)		(162	)		(175	)
Net cash provided by (used in) operating activities		6,809			11,863			12,876			(5,757	)		24,741			26,854
Cash flows from investing activities:
Increase in cash on deposit, net		(2,000	)		(17,233	)		(18,705	)		(3,300	)		(24,653	)		(26,759	)
Increase in restricted cash, net		(3,600	)		—			—			(3,700	)		(110	)		(119	)
Increase in long-term financial instruments, net		(30	)		—			—			(60	)		—			--
Purchase of property and equipment		(948	)		(1,260	)		(1,368	)		(3,966	)		(3,693	)		(4,009	)
Decrease in other current assets		47			5			5			47			5			5
Increase in other assets, net		—			(145	)		(156	)		(756	)		(36	)		(38	)
Net cash used in investing activities		(6,531	)		(18,633	)		(20,224	)		(11,735	)		(28,487	)		(30,920	)
Cash flows from financing activities:
Issuance of common shares, net		57			130			141			57			130			141
Decrease in loan to employees for stock purchase		194			—			—			216			—			--
Net cash provided by financing activities		251			130			141			273			130			141
Net increase (decrease) in cash and cash equivalents		529			(6,640	)		(7,207	)		(17,219	)		(3,616	)		(3,925	)
Cash and cash equivalents
Beginning of year		19,150			37,954			41,196			36,898			34,930			37,914
End of period		W19,679			W31,314			$33,989			W19,679			W31,314			$33,989

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GMARKET INC.
UNAUDITED SUPPLEMENTAL OPERATING DATA

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007
G M V		469.2		543.8		573.0		682.4		723.0		780.0
(in billions of Won)1
Registered Users2		8,310,737		9,238,701		10,110,874		10,967,445		11,753,910		12,407,622
Average Monthly		15,179		16,543		17,051		17,130		16,931		17,581
Unique Visitors3(000)

1.	Represents the aggregate value of all products sold on the Company’s website for the period. GMV is commonly used in the e-commerce industry to measure a company’s operating performance as transaction fees depend in part on GMV. GMV should not be construed as an alternative to any measure of performance determined in accordance with U.S. GAAP. Other companies may determine GMV in a different manner to Gmarket.
2.	Registered Users include both buyers and sellers who have registered with the Company as of the end of the period.
3.	Average monthly unique visitors represents the average number of monthly unique visitors to the Company’s website during the period, measured and announced by Metrix Corporation, a Korean Internet research company. Other research companies’ results may differ.

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