SEOUL, July 31 (AJU PRESS) - The payment delay crisis at Tmon and WeMakePrice, Korean e-commerce platforms owned by Qoo10, is now spreading to at least three other local units of the Singapore-based company.
Interpark Books, Interpark Shopping, and AK Mall, all operated by Qoo10-affiliated Interpark Commerce, are suspending operations due to the financial fallout from Tmon and WeMakePrice, the companies said Wednesday.
"Due to recent unsettled payments by Tmon and WeMakePrice, we have agreed with our partner Kyobo Book Centre to temporarily suspend services until the situation is resolved," Interpark Books said on its website. "Our CEO and all employees are committed to making every effort to restore services as soon as possible."
Kyobo Book has been processing and shipping orders placed by consumers on Interpark Books. However, the online bookstore was unable to settle payments with Kyobo Book, leading to the suspension of its services.
"Interpark Shopping, Interpark Books and AK Mall, operated by Interpark Commerce, have not received sales proceeds due to unsettled payments from Tmon and WeMakePrice, as well as the withholding of payments by some payment gateway (PG) companies, leading to delays in settling sales proceeds," AK Mall said in a statement on Tuesday.
The total amount of unsettled payments is reported to be around 20 billion won ($14.5 million) as of Wednesday.
Department store franchise AK Plaza said it will halt product listings on AK Mall starting Thursday. TV home shopping companies such as Lotte Department Store, GS Shop and CJ Onstyle have already withdrawn products from AK Mall.
Interpark Shopping has decided to cease accepting new orders starting Thursday. It will process cancellations and refunds for undelivered orders on August 12 and will completely terminate all services on August 22. The shopping platform was launched in March in collaboration with Qoo10's international channels to support Korean sellers' overseas expansion.
While Tmon and WeMakePrice typically hold consumer payments for two to three months before settling with sellers, Interpark Commerce pays sellers every Monday. However, some PG firms have locked up its funds, disrupting cash flow and delaying payments since Tuesday.
Tmon and WeMakePrice are experiencing a financial crisis due to their failure to settle payments with merchants on their platforms since early July. Businesses have canceled listings and withdrawn from the sites, while consumers have flocked to the companies demanding refunds. Estimated damages exceed 100 billion won.
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