TMON establishes new finance department

[Photo by Lee Seung-hwan]

South Korean e-commerce platform TMON is taking the first steps toward establishing an independent management system. The platform is aiming to break free from its Singapore-based parent company Qoo10 Pte in the wake of a recent large-scale unsettled payment crisis.

TMON announced a restructuring aimed at rebuilding and strengthening its e-commerce platform capabilities on Friday. Under the plan, the company created a new finance and treasury department to manage company funds more efficiently and secure financial stability.

TMON has been operating in an abnormal fashion ever since it was acquired by Qoo10 in 2022. Its financial functions were transferred to Qoo10‘s subsidiary Qoo10 Technology LLC. and was identified as one of the key factors that contributed to the recent settlement crisis. The company’s creation of the finance and treasury department is seen as a symbolic move toward independent management in this regard.

TMON also expanded its payment department, which supports customer purchases, and its legal department, which ensures compliance, while restructuring its sales organization by creating a new product division.

The product division, which oversees the sales department, will be placed directly under Chief Executive Officer Ryu Kwang-jin and will play a crucial role in normalizing the platform. Ryu will also lead the product division.

With this organizational restructuring, TMON aims to lay the foundation for independent management, enhance its e-commerce platform capabilities, and quickly restore services while fostering growth alongside small and medium-sized businesses.

It also plans to swiftly implement an “escrow” system, which involves depositing settlement funds with a third-party financial institution, to enhance the safety of payment management. Once the system is in place, it expects payments to be settled within three days of product shipment.

TMON, along with its affiliate WeMakePrice, applied for rehabilitation proceedings in court on July 29th, 2024, and is currently undergoing an autonomous restructuring support (ARS) program as per the court’s decision.

ARS is a system that allows companies and creditors to negotiate a voluntary restructuring while the court suspends the initiation of a compulsory rehabilitation process. The company‘s management and creditors gathered for their first ARS meeting on August 13th, with a second meeting to be held on August 30th.

“We are currently pursuing various avenues to normalize the company, including attracting investment and increasing capital,” Ryu said. “We will strive to restore internal and external trust and lay the foundation for long-term growth via this organizational overhaul.”