The e-commerce market in South Korea, one of the largest globally, faces new challenges as two major platforms, Ticket Monster (TMON) and WeMakePrice, come under scrutiny. The Fair Trade Commission of South Korea has launched an investigation into these platforms, both owned by Qoo10, over allegations of failing to pay out funds to merchants. The situation has left approximately 60,000 merchants collectively owed $123 million (170 billion KRW).
The liquidity issues faced by these companies have also led them to halt refunds to consumers. In response, South Korean banks have temporarily stopped loan services to both TMON and WeMakePrice due to these payment delays.
E-commerce Market Share in South Korea (2022)
| Company | Market Share |
|---|---|
| Naver | 20% |
| Coupang | 15% |
| SSG | 10% |
| Others | 55% |
Local media reports indicate that Qoo10’s series of recent acquisitions may have contributed to the current financial difficulties. These acquisitions include WeMakePrice in April 2023, TMON in August 2022, and other platforms such as InterPark Commerce and Hong Kong-based Korchina Logistics. Qoo10 also acquired Wish, a U.S.-based e-commerce platform, and AK Mall in South Korea earlier this year.
InterPark Triple, a seller of travel products on these platforms, has already ceased operations with TMON and WeMakePrice due to unpaid dues. Yanolja, the parent company of InterPark Triple, confirmed this move in an emailed statement.
Qoo10, headquartered in Singapore, was founded in 2010 as a joint venture between U.S. e-commerce company eBay and Gmarket founder Young Bae Ku. The company has expanded across several Asian markets, including Japan, Singapore, Indonesia, Malaysia, China, Hong Kong, and India.
Featured Image courtesy of DALL-E by ChatGPT
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