‘Timf’ Undistributed Amount 170 billion won… ‘Yanolja’ was lost 160 billion won

The e-commerce platform of the Qoo10 Group. Delayed payment issues at TMON and WemakePrice are intensifying.
Some sellers are instructing to stop selling products or cancel purchases, and consumer complaints are pouring in.

Yes, that’s right.
On the previous day, consumers flocked to the WemakePrice headquarters in Samseong-dong, Gangnam-gu, Seoul to receive refunds in the early morning hours.
Damage certification posts can also be frequently found on social networking services (SNS).
The number of consumer damage consultations related to TMON and WemakePrice received through the Fair Trade Commission exceeded 1,500 in just two days on the 23rd and 24th.
Nevertheless, Ryu Hwahyun, co-CEO of WemakePrice, stated that they will sequentially proceed with refunds to ensure there are no consumer damages.
Unlike WemakePrice, which has started refunds, TMON, which has a larger transaction volume, has not even begun refunds. TMON’s headquarters have closed.
The amount of unpaid settlement funds to sellers, even after the payment deadline, is estimated to reach 170 billion KRW.

Do TMON and WemakePrice have the financial strength to resolve the unpaid settlement issues?

Both TMON and WemakePrice are subsidiaries of the Qoo10 Group.
By acquiring TMON in 2022, WemakePrice in 2023, and AK Mall this year, they expanded their business.
In particular, in February, it is analyzed that they began to receive positive signals in liquidity after spending 173 million USD, approximately 240 billion KRW, to acquire the US online shopping mall Wish.
It is the industry’s viewpoint that both companies do not have the financial capacity to mobilize funds due to accumulated deficits in the capital erosion status.
The delayed payment issue started from WemakePrice and transferred to TMON, with some pointing out that the parent company Qoo10 did not play a controlling role in financial management and let the situation escalate.
One industry insider also said, “The problem started at WemakePrice back on August 8, giving TMON time to prepare before being affected.”

It seems that the companies entering TMON and WemakePrice will also suffer significant losses. What do you think?

Yes, that’s correct. In particular, Yanolja has suffered significantly.
Last April, the Qoo10 Group acquired all shares of ‘InterparkCommerce’ from Yanolja.
According to Yanolja’s business report, out of the total of 187.1 billion KRW in share trading funds, over 160 billion KRW has not been received yet.
They provided some shares of QuickXpress and InterparkCommerce as collateral, and if this situation leads to the bankruptcy of the Qoo10 Group, the collateral will be useless.
As Yanolja, which is preparing for listing on the NASDAQ, this could be a disaster.
Affected the most are travel companies and consumers who have purchased travel products, with companies like HanaTour, Modetour, Noorangpungseon, and KyowonTour suspending travel product sales through TMON and WemakePrice and sending proof of outstanding payments.
For consumers with imminent departure dates who purchased products, they plan to bear the loss and proceed with their plans as scheduled.
However, after August, they are requesting to cancel payments through the platforms and re-book through their own websites.
The previous day, Modetour’s stock price fell by 2.14%, hitting a new low in a year, and HanaTour also dropped by 1.87%.
The investment sentiment has worsened as consumers settle payments through TMON or WemakePrice after using the product, and concerns are raised that it could lead to a series of bankruptcies among small travel agencies during the peak travel seasons such as summer vacation, holidays, and Chuseok.

How are other industries responding to this situation?

As public anger boiled over with this incident, efforts are being made to prevent immediate consumer losses even if payment settlements are not received.
SPC Group has taken measures to refund all SPC mobile gift certificates sold through TMON and WemakePrice.
Simmons Bed plans to finalize delivery for products worth about 4 billion KRW that have been paid for on TMON.
Simmons is reported to be owed over 1 billion KRW in settlement payments from TMON for August and September.
A bigger problem than large companies is small sellers.
Among the estimated 60,000 sellers who have entered the Qoo10 Group, there are cases where products obtained through loans were delivered to platforms.
There is a possibility that the bankruptcy of small business owners could damage the financial sector.
As sellers withdraw and consumers stop purchasing, the fact that payment gateways, which handle credit card payments, are blocking approvals means that funds are practically frozen.
Currently, the Fair Trade Commission and the Financial Supervisory Service are conducting on-site inspections.
If payment settlements are not properly paid in the future, the scale of damages is expected to escalate like a snowball.