2024-07-27 06:00:23
Financial Supervisory Service Investigation… June and July Not Included
Damage to small and medium-sized businesses increases… Contracts are being terminated one after another
Consumer anxiety caused by the delay in settlement between Timon and WeMakePrice is spreading to other affiliates within the group that are operating normally, such as Interpark Commerce and AK Mall. These are all subsidiaries of Singaporean e-commerce company Quten. The government currently estimates the unsettled amount to be around 170 billion won, but the prevailing view is that the damage amount will increase further depending on the results of the on-site investigation.
According to the distribution industry on the 25th, some product sellers on online platforms recently stopped selling products on Interpark Commerce and AK Mall. An industry insider said, “Even if it had nothing to do with the unsettled situation, it was because of the anxiety that it could explode at any time since it is a Quten affiliate.”
Travel agencies that were under contract with Timon and WeMakePrice are canceling their contracts one after another. Hana Tour decided to proceed normally only with products departing on the 31st, and Modoo Tour also effectively canceled its contract when its settlement request was not fulfilled.
According to the Financial Supervisory Service, the unsettled amount of Tmon and WeMakePrice is estimated at 160-170 billion won. Considering the sales amount for June and July, which has not yet been settled, the damage is bound to be much larger. There are also concerns that small and medium-sized businesses and small businesses that have entered the two platforms may go bankrupt one after another. The government has decided to promote a plan to separate and manage funds that come into the platforms so that they cannot be used for purposes other than settlement to prevent a recurrence of this incident.
“Refund request” All-nighter in front of headquarters… Sales company “10 billion won in arrears, on the verge of closing down”
[티몬-위메프 지급불능 사태]
1,000 people gather at WeMakePrice headquarters to start a ‘refund war’
Waiting on the 1st floor of the headquarters – parking lot – hallway… WeMakePrice “Consumers first, sellers second”
Damage spreads to buyers of furniture, food, etc.… When vendors go bankrupt, the financial sector also takes a hit
On the morning of the 25th, WeMakePrice headquarters in Gangnam-gu, Seoul. About 200 people were milling about on the first floor of the building. Some said they had stayed up all night. Office worker Lee (35) took a vacation and arrived at 8:00 AM. She was there to get a refund for a 1.3 million won gift certificate she bought from WeMakePrice and Tmon in early July. By 2:00 PM, the number of people who came here like Lee had increased to 400, and they sat on newspapers on the first floor of the headquarters, in the parking lot, and in the hallways. Because so many people were crowded into a small space, cell phones were down for about an hour due to communication problems. They wrote their names, reservation numbers, product names, refund quantities, depositors, account numbers, etc. on pieces of paper and waited for several hours to receive their refunds. Refunds were processed for 1,400 people, but about 200 people still remained at the site after 6:00 PM.
● Damage spreads to furniture and food
Ryu Hwa-hyun, CEO of WeMakePrice, said that afternoon, “We will prioritize consumer relief first and small business owners and micro-merchants second,” and “There will be sufficient funds for refunds. Quten, WeMakePrice, and Tmon are all (expanding) the funds.” However, a seller approached CEO Ryu and protested, saying, “Why are you only refunding consumers?” and “The three unpaid sales amounts to 10 billion won. The company is going out of business.”
The number of consultation cases regarding shopping malls affiliated with the Quten Group that were received by the Korea Consumer Agency from the 23rd to the 25th reached 2,391. As the damages increase, the Consumer Agency plans to soon post a notice on its website so that it can accept applications for collective dispute mediation.
Furniture company Hanssem is also sending cancellation messages directly to consumers who paid for interior construction and furniture through Timon and WeMakePrice. Reviews are also being posted on online communities about people who bought pork belly and other items only to receive empty boxes. The categories of products that were thought to be affected by the holiday season, such as travel products and airline tickets, are now being revealed to be much wider.
There are also some companies, such as Simmons, SPC Group, and 11st, that have stepped forward to take responsibility for consumer damages even if they incur losses. They have stated that they will take measures to complete product delivery or provide full refunds for products sold on the platform and for which consumers have already paid.
● Concerns over chain of bankruptcies among sellers
The anxiety among consumers due to the delay in settlement between Timon and WeMakePrice is spreading throughout the entire e-commerce ecosystem. There are many responses online from consumers expressing anxiety, saying, “What can I buy with confidence on the Internet?” In particular, regarding AK Mall and Interpark Commerce (shopping/books) acquired by Quten, not only consumers but also sellers who have entered the platform are feeling anxious. Some sellers are preemptively leaving the platform.
According to WiseApp, Retail, and Goods, the estimated payment amounts for Timon and WeMakePrice last month were 839.8 billion won and 308.2 billion won, respectively, for a total of 1.148 trillion won. The amount of money that Timon and WeMakePrice have not yet settled with sellers is the transaction amount from May of this year, and considering the purchases made in June and July for which settlement has not yet begun, the scale of damage caused by this incident could grow as time goes by.
Some in the financial and distribution industries predict that if this situation is prolonged, it could lead to a liquidity crisis for Tmon and WeMakePrice’s parent company, Quten. A financial industry insider said, “Quten did not have enough funds to acquire Tmon and WeMakePrice in the first place,” and “In the future, debt collection and seizure procedures may be carried out.” In the worst case scenario, if this situation causes a chain of bankruptcies among small and medium-sized sellers, the financial sector, including banks that provided loans to them, will also likely suffer.
Reporter Kim Eun-ji [email protected]
Reporter Kang Woo-seok [email protected]
Reporter Lee Min-ah [email protected]
Reporter Oh Seung-jun [email protected]
Reporter Jeong Seo-young [email protected]
2024-07-27 06:00:23