South Korean E-commerce Giants Owe Over 6.8 Billion Yuan toNearly 50,000 Merchants
SEOUL, South Korea – Two major South Korean e-commerce platforms, TMON and WeMakePrice, have been embroiled in a financial scandal, owing a combined 1.279 trillion won (approximately 6.8 billion yuan) to nearly 50,000 merchants, according to an investigation by theFinancial Supervisory Service and announced by the Ministry of Economy and Finance on August 25th.
The revelation has sent shockwaves through the South Korean e-commerce industry and sparked widespread concern among affected merchants. The investigation revealed that 48,124 merchants are owed money by the two platforms, with the majority of them being small and medium-sized enterprises (SMEs).
The data shows a stark disparity in the amount owed to different merchants. While 43,493 merchants (90.4%) are owed less than 10 million won each, accounting for only 3.2% (41.4 billion won) of the total debt, a smaller group of 981 merchants (2.1%) are owed over 100 million won each, representing a staggering 88.1% (1.1261 trillion won) of the total debt.
The industries most affected by the unpaid debts are electronics, appliances, gift certificates, food, lifestyle and culture, fashion and miscellaneous goods, and tourism. Electronics and appliances accountfor the largest share of the debt at 370.8 billion won (29%), followed by gift certificates at 322.8 billion won (25.2%).
The situation has sparked protests from affected merchants who are facing financial hardship and potential bankruptcy. On August 13th,a group of merchants staged a demonstration outside the TMON headquarters in Gangnam, Seoul, demanding immediate action from the government. They argued that the government’s aid measures were ineffective and that their businesses were on the verge of collapse due to the lack of liquidity.
In response to the growing crisis, the South Koreangovernment announced a plan on August 21st to provide financial support to affected merchants, totaling 1.6 trillion won. The plan includes measures such as providing loans and other financial assistance to help merchants stay afloat.
The government has also pledged to strengthen regulations on e-commerce platforms to prevent similar incidents from happeningin the future. This includes shortening the payment settlement period for merchants and increasing transparency in the financial dealings between platforms and merchants.
The scandal has highlighted the vulnerabilities of South Korea’s e-commerce ecosystem, where SMEs are often at the mercy of large platforms. It has also raised concerns about the lack of adequate safeguardsfor merchants who rely on these platforms for their livelihoods.
The situation is likely to have a significant impact on the South Korean e-commerce industry. It remains to be seen how the government’s intervention will affect the situation and whether it will be enough to restore confidence in the sector.
Key Takeaways:
- TMON and WeMakePrice owe a combined 1.279 trillion won (6.8 billion yuan) to 48,124 merchants.
- The majority of affected merchants are SMEs, with a significant disparity in the amount owed to each.
- The scandal has sparked protestsfrom merchants who are facing financial hardship and potential bankruptcy.
- The South Korean government has announced a plan to provide financial support to affected merchants and strengthen regulations on e-commerce platforms.
- The incident highlights the vulnerabilities of South Korea’s e-commerce ecosystem and raises concerns about the lack of adequate safeguards for merchants.
This news article is based on the information provided in the Korean news report and publicly available information. It is intended to provide a factual account of the situation and does not express any opinions or beliefs.
【来源】https://cn.yna.co.kr/view/ACK20240825002000881?section=news&input=rss
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