Woes at Qoo10's South Korean e-commerce units intensify as companies cut ties

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South Korean authorities have launched an investigation into Seoul-based TMON and WeMakePrice, both owned by Qoo10.

Customers take a picture of QR code to get refund outside an office of TMON, a unit of Qoo10, in Seoul, on July 26.SEOUL - Two South Korean e-commerce platforms owned by Singapore-based Qoo10 slipped deeper into crisis on July 26 after failing to make payments to vendors, with companies cutting ties and irate customers thronging their offices demanding refunds.

WeMakePrice had unpaid bills to nearly 500 vendors worth a combined 36.9 billion won as of July 11, the Financial Supervisory Service has said. It is trying to ascertain the current total amount of unpaid bills for both e-commerce units. Last week, it said the issue was triggered by a July 8 glitch in its payment system that affected 500 vendors selling on WeMakePrice. The platform had resumed payments which should be completed by the end of July, it added.

SoftBank-backed Yanolja, an accommodation and travel platform, has informed consumers that accommodation packages bought through the sites from July 29 onward would not be honoured.Qoo10 acquired TMON, which it wholly owns, in 2022 and WeMakePrice a year later in 2023. It holds a 72.2 per cent stake in WeMakePrice, the FSS said.

 

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