FSS Conducts Emergency On-Site Inspection of TMON and WEMAKEPRICE... "Settlement Delays to Be Managed Starting This Month"

Prepaid Recharge Funds Managed in Map Form... "Consumer Damage Spread Not Expected to Be Large"

Lee Bok-hyun, Governor of the Financial Supervisory Service, is attending and speaking at the Securities Company CEO Meeting held on the 3rd at the Korea Financial Investment Association in Yeouido, Seoul. At the meeting, solutions for real estate PF and major issues in the securities industry were discussed. Photo by Jo Yong-jun jun21@

The Financial Supervisory Service (FSS) has strengthened monitoring and dispatched on-site inspection personnel to conduct checks related to the Wemakeprice (WEMAKEPRICE) and TMON incidents.

On the 25th, after reporting to the National Assembly's Political Affairs Committee, FSS Governor Lee Bok-hyun responded to concerns that the Wemakeprice and TMON incidents could escalate into a second Merge Point incident by stating, "We have sent an inspection team composed of six personnel to the field to conduct on-site inspections," adding, "We are checking whether the numbers reported by the related companies are appropriate."

Regarding whether the Electronic Financial Transactions Act, which mandates separate management of prepaid funds, was being properly followed, he said, "It is scheduled to be enforced from September, but it has been managed in a supervisory manner beforehand," and added, "It appears that consumer damage will not spread in that regard."

Concerning concerns about delayed settlements by Qoo10, which owns Wemakeprice and TMON, that have existed for over a year, he replied that a management improvement agreement had been established and was being managed accordingly. Governor Lee explained, "Since June 2022, intensified competition within the industry worsened capital ratios and deteriorated financial management conditions. In relation to this, a management improvement agreement was made and has been managed," and added, "The issue of delayed settlements to vendors has been specifically managed since this month."

He continued, "I understand that extensions of settlement periods under the agreement proceeded normally," and added, "Delays occurring without such agreements are known to have started from July."

This content was produced with the assistance of AI translation services.