TMON and WeMakePrice to enter rehabilitation proceedings after failing to raise funds

A Seoul court has approved corporate rehabilitation for e-commerce platforms TMON and WeMakePrice.

Merchants affected by delayed payments from TMON and WeMakePrice protest in front of the ruling party People Power Party's office in Yeouido, western Seoul. [YONHAP]

A Seoul court initiated corporate rehabilitation proceedings for Qoo10-owned e-commerce platforms TMON and WeMakePrice, which are currently in the midst of a liquidity crisis and grappling with payment delays, on Tuesday.

Judge Ahn Byung-wook of Seoul Bankruptcy Court's Division Two approved the companies' request for rehabilitation on Sept. 10.

The court will now appoint an administrator to compile a list of creditors and will finalize the plan after those creditors submit their claims.

Both companies had filed for corporate rehabilitation on July 29, citing an inability to recover from financial difficulties caused by large-scale refund requests and the departure of business partners.

The two firms had been undergoing an autonomous restructuring support program within the court's corporate rehabilitation structure since Aug. 2 and had been attempting to raise funds to resolve overdue payments and related issues. They failed, however, to produce self-rescue plans that were satisfactory to the court in a timely manner.

BY HAN YOUNG-HYE [yoon.seungjin@joongang.co.kr]