Gov't considering low-interest loans for merchants affected by TMON, WeMakePrice payout crisis

Industry

Published: 26 Jul. 2024, 17:16

Gov't considering low-interest loans for merchants affected by TMON, WeMakePrice payout crisis

WeMakePrice office in Gangnam District, southern Seoul on Friday YONHAP]

The Korean government is considering tapping its emergency fund to provide low-interest loans to small merchants affected by payout delays at Qoo 10-owned e-commerce sites TMON and WeMakePrice, the presidential office said Friday.

“With the Fair Trade Commission, Financial Services Commission and Financial Supervisory Service at the center, related departments are currently closely discussing and reacting to the situation, and the president’s office has ordered [them] to come up with measures,” an official told reporters on Friday.

The Ministry of SMEs and Startups is currently looking into whether affected small- and medium-sized businesses listed on TMON and WeMakePrice are eligible for its emergency relief, the Ministry told the Korea JoongAng Daily on Friday.

"Detailed policies have not been decided yet."

The ministry currently provides loans to small businesses hit by natural disasters, pandemics or other emergencies with its emergency fund.

“If businesses are suffering from temporary management issues, they may be eligible for emergency relief,” the ministry said Friday.

Korea Consumer Agency (KCA) will also open a collective consumer dispute mediation form for consumers seeking refunds for travel, flight and accommodation-related purchases made on TMON and WeMakePrice.

The dispute mediation form will be open from Aug. 1 to 9, and KCA is currently considering expanding it to other categories.

Nine credit card companies announced Friday that they would refund, and cancel the transactions of, customers who did not receive items or use services purchased from TMON and WeMakePrice.

Starting Friday, customers of Lotte Card, BC Card, Samsung Card, Shinhan Card, Woori Card, Hana Card, Hyundai Card, KB Kookmin Card and NH Nonghyup Card will be able to dispute affected transactions.

"We plan to reduce our customers' inconvenience and minimize the damage spread," the Credit Finance Association said Friday, adding that transaction cancellation and refunds can take a while to process as claims are verified.

Commercial banks announced plans to support affected businesses. KB Kookmin Bank will offer extended loan periods, repayment delays and lower interest rates.

The offerings are an effort to “minimize the damage to our customers,” the bank said Friday, adding that it would “divide the burden and fulfill our social responsibility.”

Standard Chartered Bank Korea and Shinhan Bank are also currently looking into ways of supporting affected customers.

TMON and WeMakePrice are no longer appearing in Naver and Kakao search results. Both companies announced Thursday that they would delist the platforms' products and services from their algorithms, including sponsored listings, in order to “prevent further damages.”

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]