Timon and Wemakeprice File for Rehabilitation... Financial Supervisory Service Urges CEO Gu Young-bae to Show Responsible Attitude

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The Financial Supervisory Service urged Ku Young-bae, CEO of Qoo10, to take a responsible stance regarding TMON and WEMAKEPRICE, which have filed for corporate rehabilitation in court.

On the 29th, the Financial Supervisory Service stated in its "Position on TMON and WEMAKEPRICE's Rehabilitation Application," "We expect CEO Ku to express his position through his appearance at the National Assembly on the 30th." CEO Ku, along with Ryu Kwang-jin of TMON and Ryu Hwa-hyun of WEMAKEPRICE, are scheduled to attend a hearing of the National Assembly's Political Affairs Committee on the 30th.

TMON and WEMAKEPRICE, which are experiencing large-scale consumer damages along with delays in settlement and refunds, filed for corporate rehabilitation in court on the same day. The court will review the applications submitted by the two companies and decide whether to accept the rehabilitation. This process typically takes about one week.

Generally, companies apply for preservation orders and comprehensive injunctions, and the court decides based on whether the applying company has public interest value. If a preservation order is issued, the company is exempt from repaying existing debts except for wages and taxes. A comprehensive injunction freezes all claims until the court decides to commence formal court receivership.

The Financial Supervisory Service plans to resolve financial difficulties caused by delayed settlement payments to vendors separately from the rehabilitation procedures of TMON and WEMAKEPRICE.

An official from the Financial Supervisory Service said, "We will execute the government joint support measures, including liquidity support announced today, as quickly as possible," and added, "We will continue to consult with related industries so that consumers can receive payment cancellations and refunds through card companies and electronic payment gateway (PG) companies." The official further stated, "The government will make every effort to promptly resolve the TMON and WEMAKEPRICE situation and will consider additional support measures if necessary," adding, "Since damages have already materialized due to the companies' non-settlement of sales proceeds, the situation will not change significantly with the rehabilitation application."

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