Seoul - The Financial Supervisory Service (FSS) has raised alarms over significant liquidity issues at e-commerce platforms TMON and WeMakePrice, revealing that the deficits exceed 1 trillion won (US$722.02 million), alongside suspicions of illegal activities tied to recent payment delays.
According to Yonhap News Agency, during an emergency parliamentary hearing, the financial troubles emerged following the platforms' inability to pay sellers and merchants since early July. The platforms, which are subsidiaries of the Singapore-based Qoo10, sought corporate rehabilitation at the Seoul Bankruptcy Court due to a liquidity crisis exacerbated by Qoo10’s aggressive acquisition strategies. Lee highlighted the gravity of the situation, mentioning a financial instability involving substantial sums, "We are yet to specify the exact amount, but there are issues of liquidity and financial soundness worth over 1 trillion won with TMON and WeMakePrice," he stated. Moreover, the FSS has prompted a prosecutorial investigation into the matter, which is expected to commence this week. Authorities have also restricted overseas travel for Ku Young-bae, the CEO of Qoo10, and heads of the implicated firms, as investigations deepen into the suspected irregularities.
During the hearing, Ku Young-bae admitted to temporary misappropriation of funds from TMON and WeMakePrice for the acquisition of the global e-commerce platform Wish, although he claimed the funds were returned. Ku also expressed his intention to liquidate his assets to aid the liquidity crisis, though he expressed uncertainty over the availability of these funds for resolution efforts.