Liquidity woes of sellers on TMON and WeMakePrice, South Korean affiliates of Singapore-based e-commerce platform Qoo10 Group, showed signs of spreading to consumers Thursday, with some customers forced to cancel their travel plans or prompt refund demands.
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.
The payment delays by TMON and WeMakePrice were feared to deepen liquidity woes of sellers on the online marketplaces, according to some sellers.
So far, their liquidity woes have hit hard sellers of travel tickets, consumer electronics and digital gadgets.
An official at a travel agency said, “There are not a few people who gave up their travel plans because there is no guarantee to get refunds from TMON and WeMakePrice.”
In online communities, some customers who bought electronics on TMON complained that they were forced to cancel purchases.
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.
Later Thursday, Ryu also vowed to focus on refunds, saying, “Today, we are going to complete refunds that customers want most urgently.”
Still, it was unclear whether the two platforms could pay money earned by sellers in June or this month.
As of 9 p.m., WeMakePrice said it had given refunds to around 1,450 of the roughly 1,960 customers who visited its headquarters in southern Seoul to demand refunds.
WeMakePrice and TMON have also announced that they would focus on helping customers cancel travel products that start 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.
Major travel agencies, including Hanatour and Modetour, have withdrawn from the platforms, followed by local department stores and home shopping malls.
The travel agencies have demanded TMON and WeMakePrice pay money to them by Thursday, a source close to the matter said.
Hanatour has notified TMON and WeMakePrice that it will terminate its contracts with the platforms unless they pay by Thursday, according to the source.
Other travel agencies, including Modetour and Yellow Balloon Tour, have also made similar requests, the source said.
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 the
ir 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.
Source: Yonhap News Agency
