‘Payment Delay’ TMON and WEMAKEPRICE Face Suspension of Bank Prepayment Loan Services

Banks have temporarily suspended factoring loans for certain e-commerce platforms such as Tmon and Wemakeprice, where delays in settlement of sales proceeds continue. This measure was taken due to the uncertainty in loan repayment caused by the delayed settlements.

The payment delay issue that started at Wemakeprice, an online shopping mall operated by Qoo10 Group headquartered in Singapore, is spreading to Tmon. On the 24th, citizens are passing by the Tmon building in Gangnam-gu, Seoul. Photo by Jo Yongjun jun21@

According to the financial sector on the 24th, KB Kookmin Bank has temporarily halted the execution of factoring loans for Tmon and Wemakeprice since the day before. SC First Bank also announced that it will temporarily suspend the handling of Partners Loans (factoring loans) for Tmon, Tmon World, and Wemakeprice.

Factoring loans operate on a structure where sellers registered on e-commerce platforms receive advance payment of sales proceeds (unsettled funds) from banks, and on the settlement date, the bank automatically collects the settlement amount from the e-commerce platform to repay the loan. Due to the nature of e-commerce, it can take several months from product sales to settlement, so sellers who urgently need funds mainly use this service.

The reason banks have suspended factoring loan services is because the delayed settlement situation occurring at Tmon and Wemakeprice has made loan repayment uncertain.

However, these banks explained that the suspension of factoring loan services is limited only to Tmon and Wemakeprice. SC First Bank stated, “The suspension applies only to Tmon, Tmon World, and Wemakeprice among the shopping malls eligible for Partners Loans,” adding, “Loans for other shopping malls are still available, and regarding the resumption of services, announcements and individual notifications will be made later.”