Ryu Hwa-hyun, co-chief executive of WeMakePrice, speaks to customers and reporters at the company’s headquarters in southern Seoul on July 25, 2024. (Image courtesy of Yonhap)
SEOUL, Jul. 25 (Korea Bizwire) — Payment delays by TMON and WeMakePrice, South Korean affiliates of Singapore-based e-commerce platform Qoo10 Group, were feared to deepen liquidity woes of sellers on the online marketplaces, according to some sellers Thursday.
The e-commerce platforms have failed to pay money earned by sellers in May, particularly after Qoo10 Group was reportedly tipped into a tight cash situation over aggressive merger deals.
It was not immediately known how many sellers have not been paid, but Ryu Hwa-hyun, co-chief executive of WeMakePrice, told reporters that the value of payment delays by the two platforms was some 100 billion won (US$72 million).
Ryu said he “deeply apologizes” for the payment delays, saying Qoo10 Group has been working to secure funds to pay money to sellers.
Ryu said his company will spare no efforts to help small merchants and self-employed people recover damages from the payment delays.
Still, it was unclear whether the two platforms could pay money earned by sellers in June or this month.
A rice merchant on TMON and WeMakePrice said the two platforms have failed to pay 520 million won.
“The settlement date had been pushed back from July 12 to 17 and 24, and on July 24, I was notified that the settlement was difficult,” the merchant said.
The liquidity woes were likely to hit hard sellers of travel tickets, consumer electronics and digital gadgets.
Major travel agencies, including Hanatour and Modetour, have withdrawn from the platforms, followed by local department stores and home shopping malls.
Customers who have purchased flight tickets, hotels and tour packages through WeMakePrice and TMON are now receiving notices for cancellations or requests for repayment from travel agencies.
A total of 60,000 companies sell their products through Qoo10 Group affiliates, including WeMakePrice and TMON, which reported a combined trading volume of 6.9 trillion won in 2022.
Qoo10 Group was launched by Koo Young-bae, the founder of South Korea’s major e-commerce platform GMarket, in 2010.
The company has rapidly expanded its reach by acquiring TMON in 2022, and Interpark Commerce and WeMakePrice last year.
This year, Qoo10 further extended its portfolio by purchasing North America-based e-commerce platform Wish for $173 million and AK Mall, a mid-sized Korean department store chain.
(Yonhap)
