(ATTN: ADDS financial regulator’s remarks, byline)
By Oh Seok-min
SEOUL, July 25 (Yonhap) — Finance Minister Choi Sang-mok called for close market monitoring over delays in payment by e-commerce platforms TMON and WeMakePrice, and all-out efforts to prevent damage to sellers and customers, the finance ministry said Thursday.
Choi made the remarks during an emergency meeting with ministry officials held via teleconferencing in the wake of the case where the online marketplaces owned by Singapore-based e-commerce giant Qoo10 have delayed payment to sellers amid liquidity issues.
The issue has sparked concerns about industrywide impacts and potential damage to customers, as the value of payment delays by the two was some 100 billion won (US$72 million), and most of its 60,000 sellers were small merchants and the self-employed relatively vulnerable to such risks, according to industry officials.
“Relevant ministries and institutions must check the market situation thoroughly, and make all-out efforts to protect consumers and to prevent damage to sellers,” Choi said.
Finance Minister Choi Sang-mok arrives at Incheon airport, west of Seoul, on July 23, 2024, to attend a meeting of the Group of 20 finance ministers in Brazil, in this photo provided by the finance ministry. (PHOTO NOT FOR SALE) (Yonhap)
The platforms have failed to pay money earned by sellers in May, though it was supposed to be settled this month.
Ryu Hwa-hyun, co-chief executive of WeMakePrice, apologized for the incident, saying Qoo10 Group has been working to secure funds to pay money to sellers.
The Fair Trade Commission plans to launch an on-site inspection into the companies to check if they issue a refund to buyers and abided by terms of contracts.
The regulator also pledged to set up a task force in charge of the issue under the Korea Consumer Agency.
Meanwhile, the head of the Financial Supervisory Service (FSS) said the financial regulator was already conducting an on-site inspection of the two platforms, also saying it will work to minimize any damage to sellers and their customers.
Lee Bok-hyun said the FSS dispatched a six-member inspection team to the platforms earlier in the day and it is “checking to see if the numbers reported by the companies are accurate and appropriate.”
The headquarters of WeMakePrice, a South Korean affiliate of Singapore-based e-commerce platform Qoo10 Group, bustles with customers calling for refunds in the early hours of July 25, 2024. The uproar took place amid delayed payments by the platform operator and its sister platform TMON allegedly due to a liquidity shortage within Qoo10 Group. (Yonhap)
graceoh@yna.co.kr
(END)
