Vendors are facing financial strain, while consumers are worried about cancellations and refunds due to prolonged payment delays to sellers, stemming from a liquidity crunch involving their Singapore-based parent company, Qoo10.
The two platforms have been delaying settlements with sellers since early July, prompting some businesses to cancel products and withdraw from the sites. Damages are estimated to exceed 100 billion won ($72.23 million).
Travel agencies report significant losses, with many customers canceling trips. Hotels and resorts are limiting or canceling reservations made through the platforms.
Electronics retailers, including those in Yongsan Electronics Market, are experiencing substantial losses. Food delivery services have suspended gift certificates, and game companies have halted Happy Money payments.
An open chat room for affected travelers has attracted over 1,500 members. Small business owners are expected to suffer considerable losses, prompting the Ministry of SMEs and Startups to suspend its online sales support program with the platforms.
The crisis has escalated to physical confrontations, with affected consumers gathering at WeMakePrice's headquarters in Gangnam, Seoul.
Co-CEO Ryu Hwa-hyun faced angry customers demanding refunds, leading to chaotic scenes and long wait times. WeMakePrice said it had processed 700 refunds on-site and is working to expedite the process.
The Fair Trade Commission and the Financial Supervisory Service have launched a joint on-site inspection and urge a swift resolution. They are examining the scale of delayed payments, seller withdrawals and potential violations of e-commerce laws.
