Qoo10 CEO apologizes over settlement delays

[Photo by Han Joo-hyung]

The chief executive officer of Qoo10, the Singapore-based parent company of TMON and WeMakePrice, appeared in public and apologized 22 days after massive settlement delays occurred at the two e-commerce platforms in South Korea. Ku Young-bae did not offer any concrete measures to address the situation, however. TMON and WeMakePrice officials also failed to provide clear answers regarding the flow of unpaid settlement funds and the extent of the damages.

“I will give everything I have to resolve this situation,” Ku said during a hearing at the National Assembly in western Seoul on Tuesday. “I apologize to the sellers, partners, and the public who were affected by this incident.”

“The Qoo10 group can mobilize 80 billion won ($57.79 million), but I am not sure if we will be able to use all of it,” he added.

Regarding the whereabouts of 1 trillion won in sales proceeds from TMON and WeMakePrice, he responded, “I understand that the company currently has no capital left.” Ku also acknowledged that part of the unsettled payments was used to fund the company’s mergers and acquisitions (M&A).

Lee Bok-hyun, head of the country’s Financial Supervisory Service (FSS), criticized Qoo10 during the hearing. “Given the company’s recent actions and statements, it feels like it is behaving like ‘the boy who cried wolf.’ We are currently focusing on tracking its funds and have requested an investigation as there are strong indications of illegal activities.”

President Yoon Suk Yeol also addressed the situation for the first time during a Cabinet meeting on Tuesday. “The core issue here is that TMON and WeMakePrice engaged in unfair market practices… taken thorough action according to the law,” he was quoted as saying by his office.