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Our special correspondent Ren Zhong

The debt arrears of two major Korean e-commerce platforms, TMON and Weimeipu, have attracted widespread attention from Korean media. According to a report by The Korea Times on the 30th, the two e-commerce platforms have applied for corporate restructuring on Monday.

TMON and Weimeipu said that their liquidity crisis was so serious that they could not restore their financial situation through self-help measures. The two companies failed to pay the sellers, and many sellers gave up using the two platforms, which in turn led to delays in refund processing for consumers who purchased products and services through the platforms. The Ministry of Strategy and Finance of South Korea said that the unpaid bills that have been identified are estimated to be about 210 billion won (about 1.1 billion yuan). Yonhap News Agency said that under normal circumstances, Weimeipu and TMON would pay the merchants within two months after the customer paid. The parent company of these two e-commerce platforms, Singapore's Qoo10, over-expanded its business and called on Weimeipu and TMON's accounts payable, resulting in large-scale arrears of its subsidiaries. In addition to South Korea, Qoo10 also operates in Japan, North America, China, Malaysia and Indonesia.

Yonhap News Agency reported on the 30th that Qutian.com representative Gu Yongpei said on the same day that he would use all his personal assets to stabilize the situation. He also apologized to the merchants, partners and Korean people who suffered losses due to the arrears. When asked how much company funds and personal assets could be mobilized, Gu Yongpei said that the company had 80 billion won in funds available, but it was uncertain whether it could be fully invested, and he had invested all his personal assets in the company. According to the Korea Economic Daily on the 29th, Gu Yongpei mentioned that "consumers' losses are about 50 billion won, but it is difficult to estimate suppliers' losses." He said that Qutian.com is raising funds for suppliers and customers. On the same day, the South Korean Ministry of Justice imposed an overseas travel ban on Gu Yongpei on suspicion of fraud and embezzlement of public funds. The South Korean prosecutors also set up an investigation team for the case.

According to Reuters, Qutian.com has told South Korean authorities that it aims to raise $50 million in funding to deal with the situation, but has not yet submitted a detailed plan.

According to Yonhap News Agency, Kim Beom-seok, the first vice minister of the Ministry of Planning and Finance, chaired a meeting on the 29th and released a solution of 560 billion won in liquidity funds for the debts owed by Weimei and TMON. The South Korean government will also extend the loan repayment and guarantee period of the affected companies by one year, and extend the payment period of comprehensive income tax and value-added tax by up to 9 months.

A South Korean official told The Korea Times that the sudden serious crisis of two once popular e-commerce platforms has heightened consumer concerns. "They are worried that other mid-sized e-commerce companies may suffer the same fate. Until this incident is resolved, their dependence on a few mainstream e-commerce platforms will deepen further."▲