Self-Funded Refund Support
Exemption from Cancellation Penalties
Considering Impact on Sales and Image of Other Products
The unresolved payment issue involving TMON and WEMAKEPRICE, subsidiaries of Qoo10, a Singapore-based e-commerce platform, has yet to find a breakthrough, prompting the distribution industry to prepare self-help measures such as halting transactions and issuing refunds. This is interpreted as an effort to prevent greater losses, based on the judgment that if the problems arising on these platforms spread, it could damage not only the sales of products conducted through normal channels but also the corporate image.
As the delay in seller settlements by TMON and WEMAKEPRICE causes increasing harm to consumers, purchasing customers are visiting WEMAKEPRICE headquarters in Samseong-dong, Seoul on the 25th to report their damages. Photo by Heo Younghan younghan@
According to the related industry on the 25th, SPC Group announced that it has taken measures to fully refund SPC Mobile Gift Certificates sold on TMON and WEMAKEPRICE. The company also stated, "To prevent additional customer damage, sales of the relevant products through TMON, WEMAKEPRICE, and others have been immediately suspended." The unpaid amount estimated by the company on these platforms is understood to be several hundred million won. An SPC official added, "To prevent consumer damage, we plan to issue refunds first using our own funds," and "We will seek solutions through discussions with the agencies from which we have not received settlement payments."
E-commerce company 11st also announced on the same day that customers can use all company-issued gifticons purchased on WEMAKEPRICE normally. 11st has contracts with Yogiyo, Baedal Minjok, Shinsegae, and others, and has issued gifticons for these companies, which have been sold on WEMAKEPRICE. Accordingly, gifticons issued by 11st can be used unconditionally at designated affiliated stores within the validity period, even if purchased on WEMAKEPRICE. As of this day, the amount of unused gifticons is known to be about 1 billion won.
The travel and leisure industry, where the scale of losses is relatively large, is also presenting countermeasures. Norangpungseon announced that regardless of whether payments from TMON and WEMAKEPRICE are made, events for products departing this month will proceed without issues. Additionally, for schedules departing after August, cancellation penalties will be fully waived according to customer preferences. If customers wish to travel, rebooking will be supported along with cancellation of previously paid amounts.
A Norangpungseon official said, "We regret the spread of unfounded figures regarding the scale of damage to travel agencies related to this incident," and explained, "Sales generated from these two platforms account for about 3% of the company's total travel brokerage revenue, which is an extremely insignificant level." The official added, "Incorrect information amplifies consumer anxiety and may cause secondary damage to the travel industry, which is concerning," and "We hope this issue is resolved quickly so that the travel industry normalizes and consumers do not suffer damage."
Other travel agencies are also considering measures to preserve the actual payment amounts made through TMON and WEMAKEPRICE if customers wish to rebook travel products. This is interpreted as a response to criticism that inducing double payments and passing on cancellation penalties for flights or accommodations to consumers could occur.
In addition, online travel agency (OTA) Yanolja announced that accommodations booked until the 28th, based on the check-in date, will be usable normally. From the 29th onward, accommodation reservations will be treated as unusable. Yanolja stated, "To prevent the spread of customer damage, we have reluctantly decided to make all reservations unusable," and added, "Regardless of delayed payments from TMON and WEMAKEPRICE, the company will take responsibility and settle normally with affiliated stores for products that have been used."
However, some coffee franchises such as Mega Coffee and parts of the dining industry have suddenly blocked the use of coupons already issued through TMON and WEMAKEPRICE, causing consumers with remaining balances to voice complaints on online communities. There is also a sense of secrecy surrounding the unresolved payment issue. An industry insider explained, "For companies with relatively small unpaid amounts tied up in TMON and WEMAKEPRICE, there is concern that mentioning the company names could cause customers to feel uneasy and hesitate to purchase even normally available products through other channels."
Meanwhile, according to the Consumer Agency, 2,391 consultation cases related to three shopping malls under the Qoo10 Group were received this month. TMON consultations accounted for 1,879 cases, the most, followed by WEMAKEPRICE with 479 cases, and Interpark Commerce with 33 cases.
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