Qoo10's TMON and WeMakePrice Face Payment Crisis

Seoul, South Korea - South Korean eCommerce platforms TMON and WeMakePrice, owned by Singapore-based Qoo10, are experiencing payment delays to sellers, leading to a mass exodus of merchants and service disruptions.

Major retailers, including Lotte Shopping, GS Retail, and Hyundai Department Store, have suspended sales on the platforms, citing failures to receive payments. 

Travel agencies such as Hana Tour, Modetour, and Yellow Balloon Tour have also halted sales of travel packages.

The payment issues stem from liquidity problems at Qoo10, which has rapidly expanded its portfolio through acquisitions. 

Industry experts estimate the resulting damage to be at least KRW 100 billion ($72.2 million) based on settlements owed by the two platforms.

TMON and WeMakePrice said that the payment settlement delays are temporary. They plan to introduce a settlement system in collaboration with a third-party financial institution next month.

"We will do our best to quickly resolve settlement delays and restore the trust of sellers and customers," the companies stated.

The platforms reported a combined GMV of KRW 6.9 trillion in 2022. 

However, both companies are currently experiencing capital impairment, with their total capital falling below the par value of their capital stocks.

Qoo10, founded in 2010 by former Gmarket CEO Ku Young-bae, has aggressively expanded its reach recently. 

It acquired TMON in 2022, followed by Interpark Commerce and WeMakePrice in 2023. 

This year, Qoo10 purchased North America-based e-commerce platform Wish for $173 million and AK Mall, a mid-sized Korean department store chain.

The company's goal to list its logistics subsidiary on the Nasdaq has reportedly hit obstacles due to the financial struggles of its Korean eCommerce subsidiaries.