Bankruptcy fears loom large over Tmon, WeMakePrice


Qoo10 CEO Ku Young-bae has promised to fully compensate for the financial losses suffered by its struggling e-commerce affiliates, Tmon and WeMakePrice, due to payment delays. Ku made this commitment during a session with the National Assembly's Political Affairs Committee, following the affiliates' court receivership filing. Despite expressing confidence in achieving a complete recovery with minimal assistance, Ku's assurances have been met with skepticism due to the lack of a clear plan for extending capital, which has resulted in escalating damage to consumers and vendors. The delayed payments to vendors by the two platforms currently amount to approximately 213.4 billion won, with expectations of the total rising to 1 trillion won as more transactions near settlements. Ku initially raised hopes by announcing plans to utilize all available resources, including securing overseas capital and leveraging assets and shares as collateral. However, during the hearing, he revealed that only up to 800 billion won in capital from the group is available, with uncertainty surrounding the actual amount that can be effectively utilized. The court's issuance of a preservation order and comprehensive injunction against the companies has raised concerns about the recovery of payments owed to creditors, as the rehabilitation process may involve forsaking part of the debt claims. Experts doubt the court will approve the rehabilitation applications, and there are doubts about the viability of a merger or acquisition as a recovery option for vendors. The companies have also applied for an autonomous restructuring support program, but there are concerns about the potential chain reaction of bankruptcies if agreements are not reached through this process. Additionally, the case is under investigation by the prosecution and police, with potential charges including fraud, embezzlement, breach of fiduciary duty, and violations of e-commerce laws. Overall, the situation remains uncertain, with doubts about the companies' ability to recover and concerns about the impact on vendors and the wider economy.


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