South Korean financial authorities will provide liquidity support of at least 560 billion won (approximately 404.55 million USD) to small businesses impacted by delayed payments from e-commerce platforms, the Ministry of Finance said on Monday.
"The government will utilize all available resources to minimize losses," Deputy Finance Minister Kim Bok-seok stated.
Last week, South Korean authorities launched an investigation into TMON and WeMakePrice, subsidiaries of Singapore’s Qoo10, because the two Seoul-based e-commerce companies failed to pay suppliers on time.
On Saturday, TMON and WeMakePrice announced that they are working to minimize the impact on customers and are actively informing customers on how to cancel credit card payments.
Qoo10 has informed financial authorities that it will raise 50 million USD to resolve the issue, but the Financial Services Commission stated on Sunday that a detailed plan has not yet been submitted.
