South Korea prepares support for e-commerce vendors hit by payment delays

By Reuters July 28, 2024 | 07:14 pm PT

A person makes online payment on a laptop. Photo by Pexels

South Korea's financial authorities will provide at least 560 billion won ($404.55 million) of liquidity support to small businesses having trouble due to recent payment delays by e-commerce platforms, the finance ministry said on Monday.

"The government will utilise all available resources to minimise damage," vice finance minister Kim Beok-seok said.

Last week, South Korean authorities launched an investigation into TMON and WeMakePrice, owned by Singapore-based Qoo10, after the Seoul-based e-commerce firms failed to make payments to vendors.

On Saturday, TMON and WeMakePrice said that they were making efforts to minimise damage to customers and actively notifying them of ways to cancel credit card payments.

Qoo10 has told financial authorities it would secure $50 million to remedy the situation, but no detailed plan has been submitted, the Financial Services Commission said on Sunday.