Qoo10 "Settlement delay due to system failure... Settlement to be completed by the end of this month"

Qoo10 Group Addresses Partial Settlement Delays

Qoo10 Group, which operates various domestic and international online shopping platforms such as Wemakeprice, TMON, Interpark, and Wish, recently apologized for some settlement delays and announced that all settlements will be completed by the end of this month. In addition, compensation plans have been prepared for partner companies affected by the settlement delays.

On the 17th, Qoo10 stated, "On July 8, some partner companies of Wemakeprice, a subsidiary of Qoo10, were unable to receive payments due to a payment system error," adding, "This was a temporary system failure that occurred during the platform enhancement process, causing payment settlement delays for about 500 partner companies out of a total of 60,000 partners within Qoo10's affiliated companies."

Qoo10 immediately began system recovery upon identifying the situation and completed settlements for about 400 partner companies by the 12th. Payments to the remaining partner companies are planned to be completed sequentially by the end of July.

Qoo10 apologized to the partner companies and customers who experienced inconvenience due to this settlement delay and stated that it is inspecting the payment systems of all affiliated companies. The company plans to focus all its capabilities on integrating and maintaining the systems to prevent such incidents from recurring.

Compensation plans for partner companies affected by the settlement delays have also been prepared. These include ▲ payment of 10% (annual interest rate) delay interest to all group partners who experienced settlement delays, and providing points equivalent to 10% of the delayed amount usable within each Qoo10 platform ▲ a 3% reduction in sales commission fees on Qoo10's global platforms Wishplus and Wish for three years if the settlement delay exceeds two weeks ▲ and ▲ if the settlement delay exceeds one month, an additional opportunity to purchase stocks up to 50% of the delayed settlement amount under the same conditions as employee stock purchase plans when Qoo10, Wemakeprice, or TMON go public.

Qoo10 stated, "The compensation program will be individually notified to partner companies, and we will communicate and consult closely to ensure that partners do not experience additional inconvenience."