South Korean E-commerce Giants Owe Over 68 Billion Yuan to Merchants, Affecting Nearly 50,000 Businesses
SEOUL,South Korea – Two major South Korean e-commerce platforms, TMON and WeMakePrice, are facing mounting pressure after a recent investigation revealed they owe acombined 1.279 trillion won (approximately 68.5 billion yuan) to merchants who operate on their platforms. This staggering debt affects nearly48,124 businesses, highlighting a growing concern about the financial stability of South Korea’s e-commerce sector.
The investigation, conducted by the Financial Supervisory Service and reported by the Yonhap News Agency, revealed awide range of financial difficulties faced by the merchants. A majority of the affected businesses, 43,493 (90.4%), have outstanding debts of less than 10 million won each, accounting for a relativelysmall portion (3.2%) of the total debt. However, a smaller group of 981 businesses, representing 2.1% of the total, are owed over 100 million won each, and their combined debt constitutes a significant 88.1% of the total amount owed.
The impact of these unpaid debts is particularly severe for smaller businesses. Many merchants rely heavily on e-commerce platforms for their sales, and the lack of timely payments can severely disrupt their operations and even lead to bankruptcy.
The investigation also revealed a significant disparity in the amount of debt owed to different industries. Thedigital and home appliance sectors have been hit hardest, with a combined debt of 370.8 billion won (29% of the total). The gift certificate industry follows closely with 322.8 billion won (25.2%). Other heavily affected sectors include food, lifestyle and culture, fashionand general merchandise, and tourism.
The situation has sparked widespread protests from affected merchants, who have accused the e-commerce platforms of failing to provide adequate financial support and transparency. On August 13th, a group of merchants gathered in front of TMON’s office in Seoul’s Gangnam district, demanding action from the government and the platforms. They argued that the lack of liquidity could force many businesses into bankruptcy, while government aid measures have proven ineffective.
In response to the growing crisis, the South Korean government announced a plan to provide 1.6 trillion won (approximately 86 billion yuan) infinancing support to affected businesses. The government is also considering measures to shorten the payment deadlines for e-commerce platforms and strengthen regulations to prevent similar situations in the future.
This incident highlights the growing challenges faced by South Korea’s e-commerce sector, which has experienced rapid growth in recent years. The lack of financialstability and transparency within the sector raises concerns about the long-term sustainability of the industry. The government’s response, while a step in the right direction, will need to be comprehensive and effective to address the concerns of affected merchants and ensure the stability of the e-commerce ecosystem.
Key Takeaways:
*Two major South Korean e-commerce platforms, TMON and WeMakePrice, owe a combined 1.279 trillion won (approximately 68.5 billion yuan) to nearly 48,124 merchants.
* The majority of affected businesses are owed less than 10 million woneach, but a smaller group of 981 businesses are owed over 100 million won each, accounting for the majority of the total debt.
* The digital and home appliance sectors have been hit hardest, followed by the gift certificate industry.
* Affected merchants have protested, demanding action from the governmentand the platforms.
* The South Korean government has announced a plan to provide 1.6 trillion won (approximately 86 billion yuan) in financing support to affected businesses.
Looking Ahead:
The situation in South Korea’s e-commerce sector underscores the importance of financial stability and transparency within theindustry. The government’s response will be crucial in mitigating the impact on affected businesses and preventing similar situations in the future. The incident also serves as a cautionary tale for other countries experiencing rapid e-commerce growth, highlighting the need for robust regulatory frameworks and mechanisms to protect the interests of both merchants and consumers.
【来源】https://cn.yna.co.kr/view/ACK20240825002000881?section=economy/index&input=rss
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