Tensions are rising as online shopping platforms WeMakePrice and Tmon, both owned by Qoo10, are facing a liquidity crisis, leading to widespread complaints and concerns about broader repercussions. The platforms failed to make payments to sellers in May, leading to traders leaving the platform and customer complaints. In an urgent press conference, the CEO of WeMakePrice apologized for the delayed payments, which amounted to around $2.9 million, and assured efforts to minimize further losses in collaboration with Tmon and Qoo10. The situation has led to protests from consumers demanding compensation and refunds for purchases, particularly for travel packages and gift certificates. Qoo10's acquisitions of WeMakePrice and Tmon in recent years, along with its apparent use of delayed payments to fund other business expansions, have drawn regulatory attention and speculation from industry insiders. The liquidity issues faced by the platforms, exacerbated by a lack of legal standards for payment settlement cycles, have highlighted the challenges in the competitive e-commerce market in South Korea. Additionally, the situation has prompted some retailers to offer refunds to customers to mitigate the financial impact.
Tensions are rising as online shopping platforms WeMakePrice and Tmon, both owned by Qoo10, are facing a liquidity crisis, leading to widespread complaints and concerns about broader repercussions. The platforms failed to make payments to sellers in May, leading to traders leaving the platform and customer complaints. In an urgent press conference, the CEO of WeMakePrice apologized for the delayed payments, which amounted to around $2.9 million, and assured efforts to minimize further losses in collaboration with Tmon and Qoo10. The situation has led to protests from consumers demanding compensation and refunds for purchases, particularly for travel packages and gift certificates. Qoo10's acquisitions of WeMakePrice and Tmon in recent years, along with its apparent use of delayed payments to fund other business expansions, have drawn regulatory attention and speculation from industry insiders. The liquidity issues faced by the platforms, exacerbated by a lack of legal standards for payment settlement cycles, have highlighted the challenges in the competitive e-commerce market in South Korea. Additionally, the situation has prompted some retailers to offer refunds to customers to mitigate the financial impact.