South Korea Injects $400 Million to Aid E-commerce Payment Delay Crisis

South Korea will provide $400 million in support to small businesses affected by payment delays on two Qoo10 e-commerce platforms. This move follows missed payments totaling $152 million. Financial authorities are offering low-interest loans, while Qoo10's founder pledges to use personal assets to compensate affected vendors.

South Korea is stepping in with $400 million in financial support to aid small businesses hit by payment delays on Qoo10's e-commerce platforms. The Singapore-based firm's founder committed to using his assets for compensations. TMON and WeMakePrice recently filed for corporate rehabilitation due to a payment system glitch.

The financial delays have led to investigations by South Korean authorities, vendor contract terminations, and customer refund demands. The government estimates missed payments at 210 billion won ($152 million) and is providing low-interest loans and loan repayment extensions. Vice Finance Minister Kim Beom-seok assured that all resources would be utilized to minimize damage.

Ku Young-bae, Qoo10's founder, apologized and pledged to raise emergency liquidity by leveraging assets and stakes as collateral. Meanwhile, affected vendors expressed dissatisfaction with the company's remedy plans, citing severe revenue losses and inadequate compensatory measures.