Baedal Minjok Shortens Settlement Cycle from 4 Days to 3 Days: "Sympathizing with Small Business Difficulties"
by Kim Bokyung
Published 25 Jan.2022 09:37(KST)
To Support Smooth Cash Flow for Small Business Owners
Applied from Payment on the 7th of Next Month
Advance Payment of 217 Billion Won Ahead of Lunar New Year
[Asia Economy Reporter Kim Bo-kyung] Baedal Minjok is shortening its settlement cycle to help small business owners, who are struggling due to the prolonged COVID-19 pandemic, maintain smooth cash flow.
Woowa Brothers, the operator of Baedal Minjok, announced that starting from the 7th of next month, the settlement cycle for partnered merchants will be shortened from the current 4 days to 3 days, moving it up by one day.
Until now, when a customer pays or confirms a purchase on the Baedal Minjok application, it took 4 business days for the funds to be fully collected from the electronic payment gateway (PG) or simple payment service and then settled to the restaurant.
From now on, this settlement cycle will be shortened by one more day. This was made possible as Woowa Brothers, PG companies, and simple payment service providers agreed to advance the settlement schedule in sympathy with the difficulties faced by small business owners.
The shortened settlement cycle applies to all merchants using ▲Baedal Minjok ▲Baemin1 ▲Baemin Takeout Order ▲Baemin Shopping Live ▲National Delicacies ▲Pre-order services, and will be effective for payments made from the 7th of next month. Accordingly, payments or purchase confirmations made on February 2nd can be settled on the 7th, after 3 business days excluding weekends.
Additionally, Woowa Brothers will prepay 217 billion KRW in payment funds ahead of the Lunar New Year holiday. This is to help merchants avoid cash flow difficulties during the holiday season, which requires significant cash outflow.
The prepayment of settlement funds for the Lunar New Year holiday will be made from the 28th of this month to the 4th of next month. Under the usual schedule, payments made on the 25th would be settled on February 3rd after the holiday, but with this prepayment policy, they will be paid immediately on the 28th, three business days later. Payments made from the 26th to the 28th will be settled starting February 3rd, three business days later. The settlement amounts and deposit schedules by date can be checked on Baemin Self-Service.
Kim Beom-jun, CEO of Woowa Brothers, said, "We hope that shortening the settlement schedule and early payment of holiday funds will help ease the operational burdens of small business owners who are going through difficult times due to COVID-19."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.