Government to Provide 560 Billion KRW Liquidity Support to T-Mef Affected Tenant Companies (Comprehensive)

Kim Beom-seok, First Vice Minister of the Ministry of Economy and Finance (center), is attending the TF 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@

원본보기 아이콘

The government will provide liquidity support exceeding 560 billion KRW to small and medium-sized enterprises (SMEs) and small business owners facing worsening financial difficulties due to delayed payment settlements by TMON and WEMAKEPRICE. This emergency measure was taken as the crisis rapidly spreads, with growing concerns over a wave of bankruptcies among tenant companies as the situation prolongs.

On the morning of the 29th, the Ministry of Economy and Finance announced this response plan at the 'TF Meeting on the Payment Settlement Issue of TMON and WEMAKEPRICE,' chaired by First Vice Minister Kim Beom-seok at the Government Complex Seoul. The meeting included 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 supply up to 200 billion KRW in emergency management stabilization funds through policy financial institutions (KOSME and SBA) to SMEs and small business owners experiencing or expected to experience financial difficulties due to unsettled payments. Liquidity will be provided at a low interest rate of 3.4~3.51% within the limits of delayed settlement amounts or emergency fund loan ceilings.

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. Measures to ease financial difficulties 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 refunds. Support will also be provided to help companies previously listed on TMON and WEMAKEPRICE secure new sales channels by facilitating entry into other online platforms. Based on consultations between airlines and travel agencies, the government plans to continue expanding exemptions for airline ticket cancellation fees.

To prevent consumer damage, the government will support prompt refund processing, including card payment cancellations, 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 refund them properly with the cooperation of issuers and merchants.

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

The delayed payment settlement issue involving sellers on TMON and WEMAKEPRICE, two of the top 10 domestic e-commerce companies, is causing increasing harm to both sellers and consumers. Most sellers on these platforms are small-scale SMEs, raising concerns about a wave of bankruptcies triggered by liquidity crises.

As of the 25th, the government has identified unsettled amounts totaling 213.4 billion KRW for the two companies, and the amount is expected to grow as more settlement deadlines approach.

Vice Minister Kim said, "The ultimate responsibility for this incident lies with WEMAKEPRICE and TMON, who failed to pay the promised sales proceeds," but added, "The government cannot stand by while innocent consumers and sellers suffer damages, so we will mobilize all available resources to minimize the harm."

The government fundamentally holds TMON and WEMAKEPRICE accountable and is urging them once again to take responsible measures while inspecting for any legal violations. Vice Minister Kim stated, "To prevent further spread of consumer and seller damages, related ministries will respond with full force, and a joint inspection team from the Financial Supervisory Service and Fair Trade Commission will focus on investigating legal violations related to the WEMAKEPRICE and TMON incident."

He also added, "We plan to concurrently prepare institutional improvement measures, including reviewing the adequacy of relevant laws such as the Electronic Commerce Act and the Electronic Financial Transactions Act, to prevent similar issues from recurring in the future."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.