CEO of As We Make, which boasted 32.1 billion won in sales and a 24.9% operating profit margin, resigns amid allegations of financial data falsification.
Date
Aug 13, 2026
Classification
- Startups
#
- Startup Trends
Author
As We Make, the operator of the food ingredient mart digital transformation solution 'Q-Market,' has become embroiled in a controversy regarding the authenticity of financial data submitted during the investment attraction process. CEO Son Soo-young submitted her resignation effective August 5, and the company is transitioning to a co-CEO system and a Management Normalization Committee to launch a special external accounting audit. The company has terminated its core service, Q-Market, and reorganized its workforce into a system of 37 employees by reducing it by approximately 60%.
A retail tech startup that was reported to have increased its sales ninefold in two years is facing allegations of falsifying financial data during a follow-up investment due diligence process.
Discrepancy between balance certificate and actual balance… Accounting firm: "Form never issued"
As We Make was considered a promising prospect in the venture investment market by promoting the digital transformation (DX) of neighborhood grocery stores, but it became embroiled in a controversy over the authenticity of its financial data during the process of attracting a follow-up investment worth 50 billion won. During the financial due diligence conducted by the investment management firm, discrepancies were detected between the bank balance certificates presented by the company and the actual account balances. Furthermore, when the accounting firm responded that the original audit report submitted by the company was in a format never issued by them, the investment industry placed weight on the possibility that management had manipulated the figures.
As We Make announced on the 7th that CEO Son has resigned to clarify the objective facts regarding the recently raised issues concerning financial and management data and to proceed with normalization procedures. CEO Son submitted a written resignation on the 5th, and the company is currently proceeding with the procedures for changing the representative authority, registering the resignation, and transferring management rights in accordance with relevant laws and the articles of incorporation. Going forward, the company will operate under a co-CEO system centered on the Management Normalization Committee and plans to commence a special accounting audit through an external professional agency.
Existing investors have halted additional investment procedures and are verifying actual sales, profits and losses, and the use of existing funds through external accounting audits; meanwhile, some investors have taken legal action, including filing lawsuits against former CEO Son Soo-young and others on charges of fraud. The company, however, denies the allegations of embezzlement.
Criticism raised over the mixing of total and net amounts… disclosed figures also vary depending on the source.
At the center of the controversy are profitability indicators that were unusual for a software company. The figures shared externally indicated that revenue increased from 3.59 billion won in 2023 to 32.17 billion won in 2025, and the operating profit margin rose from 8.9% in 2024 to 24.9% in 2025. However, there are discrepancies in the figures across publicly released data, with media reports stating that last year's revenue of 30 billion won and operating profit margin of 40% came under scrutiny. In either case, these figures are currently subject to verification of their authenticity.
Criticism has also been raised regarding the accounting method. It is alleged that performance figures were inflated by mixing the gross standard, which records the total sales of the food ingredient market as self-generated revenue, with the net standard, which is the commission.
The company’s history of attracting investment was tight over a short period. After completing a Series A round of 5 billion won in 2022, it raised 11 billion won in Series B in September 2024, including both new and existing shares, bringing its total investment to 17 billion won. In May 2025, it secured a Series C round worth 10 billion won with new participation from LB Investment, Partners Investment, and Wonik Investment Partners. In December of the same year, it raised Series C2, with SoluM and others participating as strategic investors; the size of the round was undisclosed. At the time, the company projected 1,840 affiliated food ingredient markets, a cumulative transaction volume of 736.8 billion won, consolidated revenue of 27 billion won, and a consolidated operating profit of 3.8 billion won for the third quarter as of the end of the third quarter of 2025.
Q-Market Closure & Reorganization into 37-Person Team… "Restoring Trust Through Regular Earnings Disclosures"
The company plans to pay all outstanding payments to clients, transition to a leadership structure under new CEO Ryu Ji-won, and pursue independent survival centered on its remaining businesses. However, with existing investors currently conducting external accounting audits and legal action, it remains to be seen whether this business restructuring will actually lead to the normalization of operations. The company intends to restore the confidence of investors and the market by regularly disclosing actual performance results relative to future plans.
New CEO Ryu Ji-won stated that the early payment of outstanding settlements for Q-Market is the first action taken to restore market confidence, adding that the company intends to demonstrate independent survival and business normalization by generating B2B sales performance based on its existing network of over 1,300 stores and core infrastructure. The key question is whether the business restructuring, which involved a 60% workforce reduction and the termination of core services, can lead to actual cash flow and new contracts rather than merely cost savings. This is because the company faces a situation where it must prove the sustainability of its business model with a staff of 37 while external verification of financial data is underway. An IB industry insider commented that the success of normalization will depend on how effectively existing suspicions are resolved through external accounting due diligence and whether the company can actually generate new contracts and cash flow.
A company considered an IPO candidate after successfully completing four consecutive funding rounds over four years saw its financial credibility crumble during a single follow-up due diligence session. Although the final facts have not yet been confirmed as the results of the special accounting audit have not been released, it remains to be seen that the authenticity of balance certificates and audit reports was not verified during the repeated rounds involving various institutional investors. The next hurdle is whether the company, having undergone service termination and a 60% layoff, can prove its business sustainability with a workforce of just 37 people.
#AsWeMake #QMarket #FinancialDataForgery #VentureInvestmentDueDues #RetailTech
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