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

Exhibit 99.1

Gmarket Reports Third Quarter 2008 Financial Results

• Revenues increased to Won 68.5 billion, up 32% year-over-year

• Operating income increased to Won 12.2 billion, up 189% year-over-year

• Net income increased to Won 14.7 billion, up 154% year-over-year

Seoul, South Korea, October 29, 2008 — Gmarket Inc. (NASDAQ: GMKT) (“Gmarket”) announced today its financial and operating results for the third quarter ended September 30, 2008.

Gmarket reported total revenues of Won 68.5 billion for the third quarter of 2008, representing a 32% increase from total revenues of Won 52.1 billion for the third 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 26% to Won 974.7 billion for the third quarter of 2008 compared to Won 775.6 billion for the same period in 2007. Transaction fee revenues for the third quarter of 2008 were Won 37.3 billion, representing a 24% increase from Won 30.0 billion for the third quarter in 2007. Advertising and other non-transaction revenues for the third quarter of 2008 were Won 31.2 billion, representing a 41% increase from Won 22.1 billion for the same period in 2007.

Operating income for the third quarter of 2008 was Won 12.2 billion, representing a 189% increase from Won 4.2 billion for the same period in 2007.

Net income for the third quarter of 2008 was Won 14.7 billion, representing a 154% increase from Won 5.8 billion for the same period in 2007. Earnings per diluted share for the third quarter of 2008 increased to Won 290 or $0.24, up from Won 115 for the same period in 2007.

“We are very pleased with our excellent third quarter performance, as we posted solid growth in GMV and revenues and tremendous growth in profitability,” said Young Bae Ku, Chief Executive Officer of Gmarket. “Our business fundamentals are stronger than ever, and we look to further separate ourselves from the competition in the upcoming quarters.”

Investor Conference Call / Webcast Details

The Company’s management will review detailed third quarter 2008 results on Tuesday, October 28, 2008 at 6:00 p.m. U.S. Eastern Time (7:00 a.m., October 29, 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: +1.866.713.8563 or +1.617.597.5311
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 October 28 at 8:00 p.m. U.S. Eastern Time (9:00 a.m., October 29, 2008 in Seoul) at www.gmarket.co.kr/IR/ and by telephone at +1 888 286 8010 or +1 617 801 6888 with passcode 15579983 (telephone replay available through 9:59 a.m. on November 4, 2008 U.S. Eastern Time (11:59 p.m., November 4, 2008 in Seoul)).

Notes:(1) The Dollar amounts provided in this release are based on an exchange rate of Won 1,206.30 to US$1.00, which is the noon buying rate in effect on September 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 contained in this 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,” “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

2

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. Recent global economic events including, but not limited to, the downturn in global economic and financial markets, changes in political, business and economic conditions, fluctuations in foreign exchange rates, tightening of the global credit markets, decreasing consumer confidence and slowing of ecommerce growth could also cause or contribute to such material differences in our actual performance, financial condition or results from those contained in this Form 6-K. Investors should consider the information contained in the Company’s submissions and filings with the SEC, including the Company’s most recent annual report on Form 20-F, together with such other documents as the Company may submit to or file with the SEC from time to time, including on Forms 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. You should not unduly rely on the forward-looking statements contained in this Form 6-K.

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

3

GMARKET INC.
UNAUDITED BALANCE SHEETS

(in millions of Korean Won and in thousands of US dollars)
	December 31,		September 30,		September 30,
	2007		2008		2008
Assets
Current assets:
Cash and cash equivalents	W	48,367	W	77,844	$	64,531
Cash on deposit		190,000		236,063		195,692
Restricted cash		8,110		10,100		8,373
Accounts receivable, net		52,565		56,890		47,160
Other current assets		8,120		11,896		9,862
Total current assets		307,162		392,793		325,618
Property and equipment, net		23,577		30,051		24,911
Other assets		6,305		8,895		7,375
Total assets	W	337,044	W	431,739	$	357,904
Liabilities and Shareholders’ Equity
Current liabilities:
Amounts payable to sellers	W	147,300	W	184,068	$	152,588
Accounts payable		22,727		27,869		23,103
Deferred revenue and advances		5,196		6,432		5,332
Loyalty program reserves		8,619		10,379		8,604
Other current liabilities		8,336		10,204		8,459
Total current liabilities		192,178		238,952		198,086
Other liabilities		3,268		5,120		4,245
Total liabilities		195,446		244,072		202,331
Shareholders’ equity:
Common shares		4,975		5,029		4,169
Additional paid-in capital		88,080		92,901		77,013
Accumulated other comprehensive income		—		66		55
Retained earnings		48,543		89,671		74,336
Total shareholders’ equity		141,598		187,667		155,573
Total liabilities and shareholders’ equity	W	337,044	W	431,739	$	357,904

4

GMARKET INC.
UNAUDITED STATEMENTS OF INCOME

(in millions of Korean Won and thousands of US dollars, except per share data)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2007			2008			2008			2007			2008			2008
Revenues:
Transaction fees	W	29,964		W	37,261		$	30,889		W	92,330		W	111,466		$	92,403
Advertising and other		22,091			31,257			25,911			63,343			91,714			76,029
Total revenues		52,055			68,518			56,800			155,673			203,180			168,432
Costs and expenses:
Cost of revenues		28,870			35,574			29,490			83,719			106,168			88,012
Sales and marketing		12,790			13,408			11,115			38,147			39,825			33,014
General and administrative		6,162			7,288			6,042			16,533			21,439			17,773
Total costs and expenses		47,822			56,270			46,647			138,399			167,432			138,799
Operating income		4,233			12,248			10,153			17,274			35,748			29,633
Other income (expense):
Interest income		2,352			4,190			3,474			6,471			10,801			8,954
Others, net		1			515			427			(24	)		798			662
Income before income tax expenses		6,586			16,953			14,054			23,721			47,347			39,249
Income tax expenses 1)		(784	)		(2,228	)		(1,847	)		(2,823	)		(6,219	)		(5,156	)
Net income	W	5,802		W	14,725		$	12,207		W	20,898		W	41,128		$	34,093
Net income per share — basic	W	117		W	294		$	0.24		W	421		W	822		$	0.68
Net income per share — diluted		115			290			0.24			413			810			0.67
Weighted average number of shares — basic		49,747,035			50,159,545			50,159,545			49,647,353			50,024,505			50,024,505
Weighted average number of shares — diluted		50,572,249			50,771,945			50,771,945			50,541,286			50,759,920			50,759,920

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 at least through the end of 2008. This discounted tax rate was not applied in the first quarter 2008 as the Company had deemed that renewal of the 13.75% rate was not probable at that time.

5

GMARKET INC.
UNAUDITED STATEMENTS OF CASH FLOWS

(in millions of Korean Won and thousands of US dollars)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2007			2008			2008			2007			2008			2008
Cash flows from operating activities:
Net income	W	5,802		W	14,725		$	12,207		W	20,898		W	41,128		$	34,093
Adjustments
Depreciation and amortization		1,694			2,682			2,224			4,699			6,990			5,795
Stock-based compensation expense		433			699			579			1,070			1,860			1,542
Provision for bad debt		59			35			29			205			168			139
Provision for severance benefits		409			556			461			1,180			1,871			1,551
Deferred tax assets		(395	)		(331	)		(274	)		(1,423	)		(925	)		(766	)
Provision for loyalty program reserves		1,423			1,815			1,505			3,590			4,911			4,071
Others, net		106			(349	)		(289	)		220			(392	)		(325	)
Changes in operating assets and liabilities
Accounts receivable		(22,024	)		(2,184	)		(1,810	)		(28,191	)		(4,395	)		(3,643	)
Amounts payable to sellers		7,116			31,438			26,061			19,691			36,768			30,480
Accounts payable		606			(310	)		(258	)		980			5,142			4,262
Accrued income		1,384			(384	)		(318	)		—			(2,357	)		(1,954	)
Other assets, net		824			1,924			1,595			(241	)		539			447
Other current liabilities		(2,270	)		(1,304	)		(1,082	)		(2,608	)		(1,282	)		(1,062	)
Payment of accrued severance benefits		(49	)		(132	)		(110	)		(211	)		(361	)		(299	)
Net cash provided by (used in) operating activities		(4,882	)		48,880			40,520			19,859			89,665			74,331
Cash flows from investing activities:
Decrease (Increase) in cash on deposit, net		14,997			(22,360	)		(18,536	)		(9,656	)		(45,382	)		(37,621	)
(Increase) in restricted cash, net		—			—			—			(110	)		(1,990	)		(1,650	)
Purchase of property and equipment		(3,191	)		(4,554	)		(3,775	)		(6,884	)		(13,424	)		(11,128	)
Decrease (Increase) in other assets, net		3,284			(95	)		(78	)		3,253			(2,408	)		(1,996	)
Net cash provided by (used in) investing activities		15,090			(27,009	)		(22,389	)		(13,397	)		(63,204	)		(52,395	)
Cash flows from financing activities:
Issuance of common shares, net		24			922			764			154			3,016			2,500
Net cash provided by financing activities		24			922			764			154			3,016			2,500
Net increase in cash and cash equivalents		10,232			22,793			18,895			6,616			29,477			24,436
Cash and cash equivalents:
Beginning of period		31,314			55,051			45,636			34,930			48,367			40,095
End of period	W	41,546		W	77,844		$	64,531		W	41,546		W	77,844		$	64,531

6

GMARKET INC.
UNAUDITED SUPPLEMENTAL OPERATING DATA

	2007								2008
	1Q		2Q		3Q		4Q		1Q		2Q		3Q
G M V (in billions of Won)1		723.0		780.0		775.6		970.0		933.4		971.1		974.7
Registered Users2(000)		11,754		12,408		12,981		13,674		14,260		14,735		15,204
Average Monthly Unique Visitors3(000)		16,931		17,581		17,925		18,712		17,861		18,651		17,840

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.

7