Qoo10 Korean Branches Under Investigation Over Late Payments to Sellers

South Korea’s e-commerce market, one of the world’s largest, is facing new challenges as two major platforms, Ticket Monster (TMON) and WeMakePrice, have come under scrutiny. South Korea’s Fair Trade Commission has launched an investigation into the platforms, owned by Qoo10, over allegations of failing to pay sellers, leaving some 60,000 sellers collectively owed $123 million (KRW 170 billion).

The cash flow problems these companies are facing have also led to a halt in refunds to consumers. In response, South Korean banks have temporarily suspended lending services to TMON and WeMakePrice due to these payment delays.

South Korea e-commerce market share (2022)

Local media reports indicate that Qoo10’s string of recent acquisitions may have contributed to its current financial woes. These acquisitions include WeMakePrice in April 2023, TMON in August 2022, and other platforms such as InterPark Commerce and Hong Kong-based Korchina Logistics. Qoo10 also acquired Wish, a U.S. e-commerce platform, and AK Mall in South Korea earlier this year.

InterPark Triple, a travel retailer on those platforms, has already ceased operations with TMON and WeMakePrice due to unpaid dues. Yanolja, InterPark Triple’s parent company, confirmed the move in an emailed statement.

Singapore-based Qoo10 was founded in 2010 as a joint venture between American e-commerce company eBay and Gmarket founder Young Bae Ku. The company has expanded into several Asian markets, including Japan, Singapore, Indonesia, Malaysia, China, Hong Kong and India.

Featured image courtesy of DALL-E by ChatGPT

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