South Korea prepares support for e-commerce vendors hit by payment delays

South Korea's financial authorities will provide at least 560 billion won ($404.55 million) in liquidity support to small businesses affected by recent payment delays from e-commerce platforms, the finance ministry announced on Monday. Vice Finance Minister Kim Beok-seok emphasized the government's commitment to utilizing all available resources to minimize damage.

Last week, South Korean authorities initiated an investigation into TMON and WeMakePrice, which are owned by Singapore-based Qoo10, after these Seoul-based e-commerce firms failed to make payments to vendors. The delays have caused significant disruptions for small businesses relying on timely payments.

In response, TMON and WeMakePrice stated on Saturday that they are working to minimize customer damage and are actively informing customers on how to cancel credit card payments. Despite Qoo10's assurance to financial authorities that it would secure $50 million to address the situation, the Financial Services Commission noted on Sunday that no detailed plan has yet been submitted.