Government to Provide 560 Billion KRW Liquidity Support to SMEs and Small Business Owners Affected by Timf

Joint Meeting of Relevant Ministries Chaired by First Vice Minister of Economy and Finance

Kim Beom-seok, First Vice Minister of Strategy and Finance (right), is attending the task force meeting of related ministries regarding unsettled payment issues of Wemakeprice and TMON at the Government Seoul Office in Jongno-gu, Seoul on the 29th, and is talking with officials. Photo by Jo Yong-jun jun21@

The government will provide liquidity support exceeding 560 billion KRW to small and medium-sized enterprises (SMEs) and small business owners in response to the delayed payment settlement issues involving TMON and WEMAKEPRICE.

On the morning of the 29th, the Ministry of Economy and Finance announced this response plan at the 'Task Force (TF) Meeting on the Unsettled Payment Issues of WEMAKEPRICE and TMON,' chaired by First Vice Minister Kim Beom-seok at the Government Complex Seoul. The meeting included participation from the 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 Land, Infrastructure and Transport, and Ministry of Culture, Sports and Tourism.

First, the government decided to provide emergency management stabilization funds of up to 200 billion KRW through the Korea SMEs and Startups Agency and the Small Enterprise and Market Service to SMEs and small business owners facing financial difficulties due to unpaid sales proceeds. Additionally, a support program exceeding 300 billion KRW will be newly established, where the Industrial Bank of Korea will offer low-interest loans guaranteed by the Korea Credit Guarantee Fund. Financial relief measures also include extending the maturity of existing loans and guarantees for affected companies by up to one year and providing interest subsidies up to 60 billion KRW (loan scale) for travel agencies and others.

To overcome management difficulties, tax support measures will be promoted, such as extending the payment deadlines for comprehensive income tax and value-added tax (VAT) by up to nine months and advancing VAT refund payments. Support will also be provided to continuously expand the exemption of airline ticket cancellation fees based on support for entry into other online platforms and consultations between airlines and travel agencies.

To prevent consumer damages, rapid refund processing such as card payment cancellations will be supported through cooperation with travel agencies, card companies, and electronic payment gateway (PG) companies. For already purchased gift certificates, efforts will be made to ensure consumers can use or receive refunds normally with the cooperation of usage locations and issuers.

Furthermore, to ensure swift damage relief, a dedicated complaint reception desk will be operated centered on the Financial Supervisory Service and the Korea Consumer Agency. Group dispute mediation applications will be accepted from the 1st to the 9th of next month for consumers affected in the travel, accommodation, and airline ticket sectors.

The delayed settlement issue involving sellers on TMON and WEMAKEPRICE, two of the top 10 domestic e-commerce companies, is ongoing, causing increasing harm to sellers and consumers. Since most sellers on TMON and WEMAKEPRICE are small-scale SMEs, concerns about a chain bankruptcy triggered by liquidity crises are emerging. The government has identified unsettled amounts totaling 210 billion KRW for the two companies so far, and considering upcoming settlement deadlines, the amount is expected to grow.

Vice Minister Kim stated, "Going forward, related ministries will make every effort to prevent the spread of damages to consumers and sellers, and through a joint inspection team of the Financial Supervisory Service and the Fair Trade Commission, we will focus on inspecting illegal activities related to the WEMAKEPRICE and TMON incidents." He added, "We also plan to prepare institutional improvement measures, including reviewing the appropriateness of related laws such as the Electronic Commerce Act and the Electronic Financial Transactions Act, to prevent similar issues from recurring."

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