Qoo10’s South Korean e-commerce platforms face regulatory scrutiny amidst payment delays

The delays have affected approximately 60,000 sellers.

South Korea’s Fair Trade Commission (FTC) and the Financial Supervisory Service (FSS) conducted inspections on July 25 at TMON and WeMakePrice, e-commerce platforms owned by Singapore-based Qoo10, due to delays in payments to sellers linked to liquidity issues.

According to Yonhap News Agency, the government has set up a task force under the Korea Consumer Agency and is preparing collective dispute resolutions to protect affected customers. The delays have affected approximately 60,000 sellers, with the total value of unpaid amounts reaching around 170 billion won ($122.69m).

FTC and Financial Supervisory Service (FSS) officials visited the companies' Seoul offices to investigate potential violations of the e-commerce transaction act, contractual agreements, and other regulations. The government has pressured the platforms to take responsible measures to resolve the issue.

FSS chief Lee Bok-hyun stated that the six-member inspection team is verifying the accuracy of the companies' reported figures. The Korea Consumer Agency has received over 2,300 complaints this month regarding these platforms. 

In response, the government is initiating procedures for collective dispute resolution and offering support for potential civil suits against the companies. The FSS and the Financial Services Commission will also enhance settlement fund management to reduce damage to sellers.

Meanwhile, Ryu Hwa-hyun, co-chief executive of WeMakePrice, apologised for the situation and assured that the Qoo10 Group is working to secure funds for seller payments.