From Investing.com: 2024-07-31 22:50:33

South Korea plans to provide $400 million in aid to small businesses affected by payment delays on TMON and WeMakePrice by Qoo10. The platforms owe an estimated 210 billion won ($152 million) to vendors. Financial authorities will offer low-interest loans and extensions on repayments to ease the impact. The prosecutor general has launched an investigation.

Qoo10 founder Ku Young-bae apologizes and pledges to use his assets to compensate customers and vendors. Qoo10 estimates customer damages at 50 billion won, but solutions may fall short for vendors. Some small businesses are facing layoffs and bankruptcy due to the payment delays. Frustration mounts as the situation unfolds.

Qoo10 operates in multiple countries but its Japanese business was acquired by eBay in 2018. The company has not addressed concerns about the health of its other operations. Vendors are demanding more effective solutions to the financial crisis. The South Korean government and financial authorities are working to alleviate the impact on small businesses affected by the payment delays.



Read more at Investing.com: South Korea to support vendors hit by Qoo10 payment delays, founder pledges compensation By Reuters