SEOUL, August 6 (AJU PRESS) - The Korean government on Tuesday promised massive financial support to ensure that refunds are completed this week for consumers affected by the ongoing e-commerce payment crisis.
Officials from related ministries and the ruling People Power Party (PPP) held a high-level policy consultation to address the financial troubles surrounding Tmon and WeMakePrice, e-commerce platforms owned by Singapore-based Qoo10.
“The ruling party and the government agreed to actively pursue measures to promptly support consumers and sellers and prevent additional damage," said Kim Sang-hoon, the PPP's policy chief, in a briefing following the meeting at the National Assembly in Seoul.
The government plans to facilitate refunds through credit card companies and payment gateways for general merchandise purchased on the platforms, he said.
To assist affected businesses, the government will provide 200 billion won ($145 million) in emergency funds and offer 300 billion won in emergency liquidity through financial institutions. Support for overdue wages will also be considered.
Kim said that the government will push to introduce shorter legal settlement periods for e-commerce payment processors and establish new obligations for the separate management of sales proceeds.
The two sides agreed to swiftly prepare a comprehensive plan, including institutional improvements, to address the crisis.
Tmon and WeMakePrice are facing a financial crisis due to their inability to settle payments with merchants on their platforms since early July.
As a result, businesses have canceled their listings and withdrawn from the sites, while consumers are demanding refunds. The estimated damages have exceeded 100 billion won.
Copyright ⓒ Aju Press All rights reserved.