E-commerce platforms Tmon and WeMakePrice face growing crisis due to payment delays

SEOUL, July 24 (AJU PRESS) — Korean e-commerce platforms WeMakePrice and Tmon are facing a growing crisis due to prolonged delays in payments to sellers, a result of the liquidity crisis at their Singaporean parent company, Qoo10.

Both sides have delayed settlements with sellers since early July, prompting companies across categories to cancel products and pull from platforms. The damage is estimated to exceed 100 billion won ($72.23 million).

Major retailers including Lotte Department Store, and travel agencies such as Hana Tour, Mode Tour and Yellow Balloon have suspended sales on these platforms.

Payment gateway companies began suspending credit card transactions Tuesday, blocking both new purchases and the cancellation of existing transactions. That’s forcing customers to demand cash refunds and wait forever.

Banks including KB Kookmin Bank and SC First Bank have also suspended prepaid loans to merchants Tmon and WeMakePrice, citing uncertainty in repayments due to delayed settlements. The move further complicates the financial situation of many small and medium-sized businesses that rely on these platforms.

The crisis has also hit previously purchased discount coupons and gift cards, which can no longer be used on partner platforms like Naver Pay, SSG Pay and food delivery app Yogiyo. Tmon had been selling its “Tmon Cash” at a 10 percent discount and offering gift cards at discounted prices, which are now frozen.

Financial authorities, including the Financial Supervisory Service, have begun monitoring the situation and are considering potential responses to the crisis.

The incident has raised concerns about a possible repeat of the Merge Point crisis of 2021, when the points-based shopping platform failed, leading to massive consumer losses.

Qoo10 Group was founded by Koo Young-bae in 2010. The company’s liquidity problems intensified after it announced in February the acquisition of US global shopping platform Wish for $173 million.

Tmon and WeMakePrice operate a system where they settle payments with merchants up to two months after a customer purchases. Qoo10 reportedly used the funds for aggressive business expansion, leading to cash shortages and delays in payments and refunds.