The South Korean government is offering significant financial assistance for sellers damaged by payment delays from the e-commerce platforms TMON and WeMakePrice, both controlled by Singapore-based Qoo10. The government would inject more than 560 billion won (roughly $405.4 million) to help these vendors. This support includes emergency funding, loans, tax extensions, and assistance in discovering new business channels.
The delays, which began in early July, were attributed to financial concerns within Qoo10. CEO Ku Young-bae has pledged to utilizing his personal assets to help with compensation efforts, acknowledging consumer losses of approximately 50 billion won. Qoo10 is also looking for $50 million in emergency capital from international sources and asset sales. In reaction to the crisis, popular shops and travel firms have banned sales on TMON and WeMakePrice, encouraging customers to seek refunds owing to payment problems. The companies have stated that they are developing a new settlement method with a third-party banking institution to address the delays and rebuild trust with sellers and customers.
“The government will use all available resources to mitigate the damage,” Vice Finance Minister Kim Beom-seok told reporters.
Ku Young-bae, the South Korean founder and CEO of Qoo10, apologized on Monday and stated that the company would acquire emergency financing by drawing on overseas money, selling assets and stakes, or using them as security.
“I will sell or use my entire stake in Qoo10, which is most of my assets, as security and use it to resolve this situation,” according to a statement he made.
Qoo10 additionally stated its intentions to launch a new settlement method in partnership with a third-party financial institution. This strategy is designed to protect future earnings and avoid similar problems from occurring. The corporation has assured stakeholders that efforts are being made to reduce the payment backlog and restore trust among merchants and customers.
As the situation evolves, the primary focus remains on stabilizing the affected platforms and ensuring that vendors and consumers are fairly refunded. The government’s intervention, along with Qoo10’s efforts, aims to rebuild trust in the e-commerce market and pave the path for a more safe and dependable system for future transactions.
