Prosecutors Investigate Complainant in 'Timeff Unsettled Payment Incident'... "Damage Amount 23 Billion Won"

The prosecution summoned the representative of a settlement company that suffered damages due to the non-settlement of sales proceeds from Tmon and Wemakeprice (Timep) for investigation.

Seoul Seocho-gu Seoul Central District Prosecutors' Office. / Photo by Jinhyung Kang aymsdream@

According to the legal community on the 28th, the Seoul Central District Prosecutors' Office's dedicated investigation team for Tmon and Wemakeprice (led by Lee Joon-dong, Head of the Anti-Corruption Investigation Division 1) questioned Park, the representative of settlement company A, in the afternoon as a complainant. A settlement company is an agency that pays sellers in advance the proceeds they should receive from platform companies and later collects the settlement amount from the platform companies. This Timep incident caused large-scale damages.

Company A also suffered damages amounting to 16 billion KRW from unsettled payments by Tmon. Accordingly, Representative Park filed a complaint with the prosecution on the 31st of last month against Koo Young-bae, CEO of Qoo10, Ryu Kwang-jin, CEO of Tmon, and Ryu Hwa-hyun, CEO of Wemakeprice. Park claimed that the Timep management knew in advance that the non-settlement incident would occur but continued the settlement service without interruption.

Park told reporters on the day, "The damage amount on Wemakeprice's side for (Company A) is between 2 billion and 3 billion KRW, and the total damage amount is about 23 billion KRW."

In this regard, the prosecution is investigating allegations that Timep, despite knowing it was difficult to pay sales proceeds on time due to cash flow shortages, maintained contracts with tenant companies and sold goods.