Finance minister calls for scrutiny of payment delays by TMON, WeMakePrice

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. 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. Source: Yonhap News Agency