Gmarket (EBGMY) 6-K Gmarket Reports Second Quarter 2008 Financial Results

Exhibit 99.1

Gmarket Reports Second Quarter 2008 Financial Results

• Revenues increased to Won 70.0 billion ($66.9 million), up 26% year-over-year

• Operating income increased to Won 13.2 billion ($12.6 million), up 74% year-over-year

• Net income increased to Won 16.1 billion ($15.4 million), up 91% year-over-year

Seoul, South Korea, July 30, 2008 — Gmarket Inc. (NASDAQ: GMKT) (“Gmarket”) announced today its financial and operating results for the second quarter ended June 30, 2008.

Gmarket reported total revenues of Won 70.0 billion ($66.9 million) for the second quarter of 2008, representing a 26% increase from total revenues of Won 55.6 billion for the second quarter of 2007.

The Company’s gross merchandise value (“GMV”), which represents the total value of all items sold on Gmarket’s website, increased by 25% to Won 971.1 billion ($927.7 million) for the second quarter of 2008 compared to Won 780.0 billion for the same period in 2007. Transaction fee revenues for the second quarter of 2008 were Won 37.4 billion ($35.7 million), representing a 16% increase from Won 32.1 billion for the second quarter in 2007. Advertising and other non-transaction revenues for the second quarter of 2008 were Won 32.6 billion ($31.2 million), representing a 39% increase from Won 23.4 billion for the same period in 2007.

Operating income for the second quarter of 2008 was Won 13.2 billion ($12.6 million), representing a 74% increase from Won 7.6 billion for the same period in 2007.

Net income for the second quarter of 2008 was Won 16.1 billion ($15.4 million), representing a 91% increase from Won 8.4 billion for the same period in 2007. Earnings per diluted share for the second quarter of 2008 increased to Won 317 or $0.30, up from Won 167 for the same period in 2007.

“We are pleased with our second quarter performance and the progress with our initiatives. We are continuing to strengthen our growth drivers by focusing on emerging categories including food and lifestyle products and developing categories for future opportunities,” said Young Bae Ku, Chief Executive Officer of Gmarket. “Through improved operational efficiency and expanding advertising revenue streams, we are continuously increasing our profitability.”

During the second quarter of 2008, the Company’s registered user base grew to approximately 14.7 million from 14.3 million registered users at the end of the first quarter of 2008. In addition, the Company averaged 18.7 million monthly unique visitors in the second quarter of 2008, compared to 17.6 million unique visitors during the second quarter of 2007.

On June 27, 2008, the Company was granted renewal of its status as an eligible venture Company under the Special Tax Treatment Control Law of Korea. This renewal entitles the Company to a reduced tax rate of 13.75%, which is 50% of the statutory tax rate, for taxable income directly generated from operations, effective until 2008. This discounted tax rate was not applied in first quarter 2008 as the Company had deemed that renewal of the 13.75% rate was not probable at that time.

Investor Conference Call / Webcast Details

The Company’s management will review detailed second quarter 2008 results on Tuesday, July 29, 2008 at 6:00 p.m. U.S. Eastern Time (7:00 a.m., July 30, 2008 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: +1 800 884 5695 or +1 617 786 2960

Hong Kong: +852 3002 1672

Singapore: +65 6823 2164

U.K.: +44 207 365 8426

Korea: +82 00 308 13 1153

Password for all regions: Gmarket

A replay of the call will be available beginning July 29 at 8:00 p.m. U.S. Eastern Time (9:00 a.m., July 30, 2008 in Seoul) at www.gmarket.co.kr/IR/ and by telephone at +1 888 286 8010 or +1 617 801 6888 with passcode 92291558 (telephone replay available through 10:59 a.m. on August 6, 2008 U.S. Eastern Time (11:59 p.m., August 6, 2008 in Seoul)).

Notes:(1) The Dollar amounts provided in this release are based on an exchange rate of Won 1,046.80 to US$1.00, which is the noon buying rate in effect on June 30, 2008 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 primarily 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

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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,” “continue,” “plan” or “predict” or the negative thereof or other similar words, although not all forward-looking statements will contain these words. These forward-looking 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 Forms 20-F and 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.

John Robertson
The Ruth Group
+1-646-536-7024
jrobertson@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,
	2007		2008		2008
Assets
Current assets:
Cash and cash equivalents		W48,367		W55,051	$	52,590
Cash on deposit		190,000		213,275		203,740
Restricted cash		8,110		10,100		9,648
Accounts receivable, net		52,565		54,659		52,215
Other current assets		8,120		12,956		12,377
Total current assets		307,162		346,041		330,570
Property and equipment, net		23,577		28,165		26,906
Other assets		6,305		8,736		8,345
Total assets		W337,044		W382,942	$	365,821
Liabilities and Shareholders’ Equity
Current liabilities:
Amounts payable to sellers		W147,300		W152,630	$	145,806
Accounts payable		22,727		28,180		26,920
Deferred revenue and advances		5,196		6,217		5,939
Loyalty program reserves		8,619		9,773		9,336
Other current liabilities		8,336		10,299		9,838
Total current liabilities		192,178		207,099		197,839
Other liabilities		3,268		4,573		4,368
Total liabilities		195,446		211,672		202,207
Shareholders’ equity:
Common shares		4,975		5,006		4,783
Additional paid-in capital		88,080		91,302		87,221
Accumulated other comprehensive income		—		16		15
Retained earnings		48,543		74,946		71,595
Total shareholders’ equity		141,598		171,270		163,614
Total liabilities and shareholders’ equity		W337,044		W382,942	$	365,821

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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,
	2007			2008		2008		2007			2008		2008
Revenues:
Transaction fees		W32,129			W37,392		$35,720		W62,366			W74,205		$70,887
Advertising and other		23,438			32,621		31,163		41,252			60,457		57,754
Total revenues		55,567			70,013		66,883		103,618			134,662		128,641
Costs and expenses:
Cost of revenues		29,253			36,474		34,844		54,849			70,594		67,438
Sales and marketing		13,111			13,493		12,889		25,358			26,417		25,236
General and administrative		5,612			6,862		6,555		10,371			14,151		13,518
Total costs and expenses		47,976			56,829		54,288		90,578			111,162		106,192
Operating income		7,591			13,184		12,595		13,040			23,500		22,449
Other income (expense):
Interest income		2,066			3,467		3,312		4,119			6,611		6,315
Others, net		(99	)		149		142		(24	)		283		270
Income before income tax expenses		9,558			16,800		16,049		17,135			30,394		29,034
Income tax expenses 1)		1,141			719		687		2,039			3,991		3,812
Net income		W8,417			W16,081		$15,362		W15,096			W26,403		$25,222
Net income per share — basic		W169			W321		$0.31		W304			W529		$0.51
Net income per share — diluted		167			317		0.30		299			521		0.50
Weighted average number of shares — basic		49,657,529			50,046,277		50,046,277		49,582,287			49,899,610		49,899,610
Weighted average number of shares — diluted		50,524,504			50,798,090		50,798,090		50,484,722			50,692,036		50,692,036

1) On June 27, 2008, the Company was granted renewal of its status as an eligible venture Company under the Special Tax Treatment Control Law 0f Korea. This renewal entitles the Company to a reduced tax rate of 13.75%, which is 50% of the statutory tax rate, for taxable income directly generated from operations, effective until 2008. This discounted tax rate was not applied in first quarter 2008 as the Company had deemed that renewal of the 13.75% rate was not probable at that time. The higher tax rate had a negative impact on our first quarter 2008 EPS by 3 cents.

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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,
	2007			2008			2008			2007			2008			2008
Cash flows from operating activities:
Net income		W8,417			W16,081			$15,362			W15,096			W26,403			$25,222
Adjustments
Depreciation and amortization		1,534			2,179			2,082			3,005			4,308			4,115
Stock-based compensation expense		400			691			660			637			1,161			1,109
Provision for bad debt		95			—			—			146			133			127
Provision for severance benefits		353			627			599			771			1,315			1,256
Deferred tax assets		(573	)		(598	)		(571	)		(1,028	)		(594	)		(567	)
Provision for loyalty program reserves		1,323			1,713			1,636			2,167			3,096			2,957
Others, net		118			(49	)		(47	)		114			(43	)		(41	)
Changes in operating assets and liabilities
Accounts receivable		(5,577	)		(1,489	)		(1,423	)		(6,167	)		(2,211	)		(2,112	)
Amounts payable to sellers		6,881			(7,094	)		(6,777	)		12,575			5,330			5,092
Accounts payable		2,999			6,286			6,005			374			5,452			5,209
Accrued income		(1,198	)		(1,611	)		(1,539	)		(1,384	)		(1,973	)		(1,885	)
Other assets, net		(1,196	)		(1,833	)		(1,752	)		(1,735	)		(2,404	)		(2,297	)
Other current liabilities		(1,577	)		254			243			332			1,042			995
Payment of accrued severance benefits		(136	)		(150	)		(143	)		(162	)		(229	)		(218	)
Net cash provided by operating activities		11,863			15,007			14,335			24,741			40,786			38,962
Cash flows from investing activities:
(Increase) in cash on deposit, net		(17,233	)		(11,522	)		(11,007	)		(24,653	)		(23,022	)		(21,993	)
(Increase) in restricted cash, net		—			—			—			(110	)		(1,990	)		(1,901	)
Purchase of property and equipment		(1,260	)		(6,306	)		(6,024	)		(3,693	)		(8,870	)		(8,473	)
(Increase) in other assets, net		(140	)		(1,606	)		(1,533	)		(31	)		(2,314	)		(2,210	)
Net cash (used in) investing activities		(18,633	)		(19,434	)		(18,564	)		(28,487	)		(36,196	)		(34,577	)
Cash flows from financing activities:
Issuance of common shares, net		130			2,071			1,978			130			2,094			2,000
Net cash provided by financing activities		130			2,071			1,978			130			2,094			2,000
Net increase (decrease) in cash and cash equivalents		(6,640	)		(2,356	)		(2,251	)		(3,616	)		6,684			6,385
Cash and cash equivalents:
Beginning of period		37,954			57,407			54,841			34,930			48,367			46,205
End of period		W31,314			W55,051			$52,590			W31,314			W55,051			$52,590

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GMARKET INC.
UNAUDITED SUPPLEMENTAL OPERATING DATA

	2007								2008
	1Q		2Q		3Q		4Q		1Q		2Q
G M V (in billions of Won)1		723.0		780.0		775.6		970.0		933.4		971.1
Registered Users2(000)		11,754		12,408		12,981		13,674		14,260		14,735
Average Monthly Unique Visitors3(000)		16,931		17,581		17,925		18,712		17,861		18,651

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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