Mongolia introduced a new payment system to public transportation in 2015. Ulaanbaatar Smart Card, a subsidiary of the Korean Tmoney Company, suffered a 1.79 billion Korean Won (USD 1.4 million) loss in 2019, following a 1.82 billion Won loss the previous year. Its accumulated loss over the past five years has now reached 9.2 billion won.
Tmoney transplanted Seoul’s public transportation payment system to Mongolia, a year after it declared the “Vision 2020” plan in 2014 to overcome difficulties from the saturated domestic market. Back then, the company expected to make a 100 billion Korean Won profit from Mongolia over the following 10 years.
In 2016, its Mongolian subsidiary fell into a state of capital impairment. Last year, Its debt was 7.1 billion Won larger than its assets. What is worse, performances of Tmoney’s other subsidiaries established for its foreign businesses have remained sluggish. (source: The Korea Times)