SEOUL -- Liquidity issues faced by TMON and WeMakePrice, South Korean affiliates of Singapore-based e-commerce platform Qoo10 Group, have begun affecting consumers, with some forced to cancel travel plans or demand refunds. The e-commerce platforms have failed to pay sellers their earnings from May, following Qoo10 Group's financial struggles due to aggressive mergers.
According to Yonhap News Agency, the payment delays by TMON and WeMakePrice have worsened the liquidity problems of sellers on these online marketplaces. This issue has significantly impacted sellers of travel tickets, consumer electronics, and digital gadgets. A travel agency official noted that several customers have canceled their travel plans due to uncertainty over refunds from TMON and WeMakePrice.
In various online communities, customers have expressed frustration over canceled electronics purchases. Although the exact number of unpaid sellers is unclear, Ryu Hwa-hyun, co-chief executive of WeMakePrice, reported that the total payment delays amount to approximately 100 billion won ($72 million). Ryu apologized for the delays and assured that Qoo10 Group is working to secure funds to pay the sellers, pledging efforts to help small merchants and self-employed individuals recover from the financial setbacks.
Ryu further committed to prioritizing refunds, stating, "Today, we are going to complete refunds that customers want most urgently." However, it remains uncertain if the platforms can pay sellers their earnings from June or this month. As of 9 p.m., WeMakePrice had issued refunds to around 1,450 out of 1,960 customers who visited its headquarters demanding refunds.
WeMakePrice and TMON announced their focus on assisting customers in canceling travel products starting this month. A rice merchant reported that the platforms owe 520 million won, with settlement dates repeatedly postponed. Major travel agencies such as Hanatour and Modetour have withdrawn from the platforms and demanded payments by Thursday, with Hanatour threatening to terminate contracts if payments are not made.
Customers who purchased flight tickets, hotels, and tour packages through WeMakePrice and TMON are now receiving cancellation notices or repayment requests from travel agencies. Approximately 60,000 companies sell products through Qoo10 Group affiliates, which reported a combined trading volume of 6.9 trillion won in 2022. Qoo10 Group, founded by Koo Young-bae, has rapidly expanded by acquiring TMON in 2022 and Interpark Commerce and WeMakePrice last year. This year, Qoo10 further expanded its portfolio by purchasing North America-based e-commerce platform Wish for $173 million and AK Mall, a mid-sized Korean department store chain.