Government: "Timef Unsettled Amount Exceeds 820 Billion Won... Prevention Measures to Be Announced Soon"

Government TimeF Related Ministries TF Meeting
Snowballing Including Transactions from June to July
Measures Such as Shortening Settlement Cycle to Be Announced Soon

The government estimated that the unpaid seller amounts for the two companies Tmon and Wemakeprice (Timep) will increase to at least 820 billion KRW. To prevent a 'second Timep incident,' measures such as shortening the settlement cycle and expanding the deposit of sales proceeds will be announced soon.

On the 2nd, the government held a task force (TF) meeting related to the Wemakeprice and Tmon incidents at the Government Complex Seoul, chaired by Kim Beom-seok, the 1st Vice Minister of the Ministry of Economy and Finance. Officials from the Ministry of Economy and Finance, Financial Services Commission, Financial Supervisory Service, Fair Trade Commission, Ministry of SMEs and Startups, Ministry of Trade, Industry and Energy, Office for Government Policy Coordination, Ministry of Culture, Sports and Tourism, Ministry of Agriculture, Food and Rural Affairs, Ministry of Oceans and Fisheries, and Ministry of Science and ICT attended the meeting.

Kim Beom-seok, First Vice Minister of the Ministry of Economy and Finance (center), is presiding over the "3rd Task Force Meeting of Relevant Ministries Regarding the Wemakeprice and Tmon Incident" held on the morning of the 2nd at the Government Seoul Office in Jongno-gu, Seoul. /
Photo by Ministry of Economy and Finance

At the meeting, the government estimated the damage scale of the Timep incident at 274.5 billion KRW as of the 31st of last month. Previously, the Financial Supervisory Service had identified unpaid damage amounting to 213.4 billion KRW on the 25th of last month, so the scale has increased. The government expects that including transactions due for settlement in June and July, the unpaid amount will increase more than threefold to over 820 billion KRW.

The government will promptly supply liquidity exceeding 560 billion KRW announced this week and will start accepting applications for emergency management stabilization funds through the Small and Medium Business Corporation and the Small Enterprise and Market Service, as well as support programs through the Korea Credit Guarantee Fund and Industrial Bank of Korea, as early as next week.

Previously, the government announced support of liquidity of at least 300 billion KRW through emergency management stabilization funds of 200 billion KRW via the Small and Medium Business Corporation and Small Enterprise and Market Service for small and medium enterprises and small business owners who did not receive sales proceeds, and at least 300 billion KRW through the Korea Credit Guarantee Fund and Industrial Bank of Korea agreement programs. This also includes 60 billion KRW for interest rate differential compensation for travel agencies.

Since the 29th of last month, affected consumers can apply directly for cancellation and refund procedures through card companies and electronic payment gateway (PG) companies instead of Wemakeprice and Tmon. The Ministry of Economy and Finance stated, "Since Wemakeprice and Tmon have provided general product delivery information to PG companies, the verification process for actual refund processing will accelerate."

A dedicated counter for victims of delayed settlement of sales proceeds from TMON and WEMAKEPRICE is set up at the Financial Support Center of the Financial Supervisory Service in Yeouido, Seoul. Photo by Yongjun Cho jun21@

The government is focusing on assessing the impact by communicating with companies through the relevant ministries. The Ministry of Economy and Finance said, "We have also checked the unpaid status for gift certificates, the performance industry, and agricultural product sales companies where damage is expected, and will provide consumer and seller support measures if necessary."

Efforts to prepare measures to prevent recurrence of this incident are also accelerating. The focus of the measures is on shortening the settlement cycle and expanding the deposit of sales proceeds. The Ministry of Economy and Finance said, "At today's meeting, fundamental institutional improvement directions such as shortening the settlement cycle and expanding the deposit of sales proceeds were discussed. Based on the discussions, we plan to prepare and announce institutional improvement directions soon."