Timonet Victim Sellers' 'Unsettled Payments' Borrowed from Multiple Institutions... Minimal Screening

by Lim Chulyoung

Published 06 Aug.2024 12:01(KST)

Operation of Gieun-Shinbo Support Program from the 9th... Emergency Management Stabilization Fund Support by Sojinkong and Jungjinkong
Simplified Screening up to 300 Million KRW, Amount Limit Possible for Amounts Exceeding 300 Million KRW Due to Limit Assessment
Common Maturity Extension and Repayment Deferral Support Across All Financial Sectors

As consumer payment cancellations related to Tmon and Wemakeprice, payment gateway (PG) companies affiliated with card companies, begin in earnest, refunds are expected to be processed sequentially starting as early as the 1st. On this day, a dedicated counter for victims of the delayed settlement of sales proceeds from Wemakeprice and Tmon has been set up at the Financial Support Center of the Financial Supervisory Service in Yeouido, Seoul. Photo by Jo Yongjun jun21@

Starting from the 7th, the government will support companies affected by delayed settlements from Wemakeprice (WEMAKEPRICE) and TMON by extending the maturity of existing loans and guarantees by up to one year and providing repayment deferrals. Additionally, from the 9th, the Industrial Bank of Korea (IBK) and the Korea Credit Guarantee Fund (KODIT) will begin accepting pre-applications for a liquidity support program worth 300 billion KRW plus alpha (α) at a minimum interest rate of 3.9%. The Small Enterprise and Market Service (SEMAS) and the Korea SMEs and Startups Agency (KOSME) will also provide emergency management stabilization funds worth 200 billion KRW at interest rates of approximately 3.4% or 3.51%.

Below are questions and answers related to the government's liquidity support programs.

Where can affected companies apply to receive the liquidity support program?

Affected companies can apply for the IBK-KODIT cooperative program through 99 KODIT branches nationwide, and after guarantee screening, receive loans through IBK. Additionally, SMEs can receive emergency management stabilization funds from KOSME, with applications available online via the SME Policy Fund website or offline at 33 regional KOSME offices nationwide.

For the SEMAS emergency management stabilization funds, small business owners can apply online through the Small Business Policy Fund website or offline at 77 SEMAS regional centers nationwide. Both KOSME and SEMAS have well-established non-face-to-face application systems, allowing convenient and prompt online applications, so online applications are recommended whenever possible.

How is the unpaid settlement amount being identified for support?

The Financial Supervisory Service (FSS) is identifying unpaid settlement amounts through Wemakeprice and TMON, and will share this information with KOSME, SEMAS, KODIT, and IBK via an emergency response team. If there are discrepancies between the amounts calculated by the FSS and those independently verified, the support institutions will coordinate to reconfirm with the FSS.

If the unpaid settlement amount exceeds the program limits, will the excess amount not be supported?

Multiple institutions can provide loans within the unpaid settlement amount. For example, if a small business owner A has an unpaid settlement amount of 300 million KRW, they can receive 150 million KRW from SEMAS and then borrow the remaining 150 million KRW from KODIT-IBK. However, to ensure that the total support amount does not exceed the unpaid settlement amount, the emergency response team and institution-specific support teams will share applications, receipts, and support performance daily.

Can applicants receive the full loan amount within the unpaid settlement amount?

Unlike existing loans, the screening process will be minimized to provide support, but some applications may be rejected or supported for less than the requested amount during certain evaluation stages. The KODIT-IBK program simplifies screening for amounts up to 300 million KRW, while amounts exceeding 300 million KRW may be subject to limits due to quota constraints.

SEMAS emergency management stabilization funds will provide maximum support within the damage amount unless loan restrictions apply. KOSME's emergency management stabilization funds will conduct on-site inspections and business feasibility evaluations but will relax evaluation criteria to prioritize support over other funds.

Can funds be provided to cover loan delinquencies caused by unpaid settlements from Wemakeprice and TMON?

In principle, if loans are delinquent, maturity extensions, repayment deferrals, and new loan support are not available. However, in cases where delinquencies occurred due to the Wemakeprice and TMON incident, all financial institutions will provide maturity extensions and repayment deferrals to resolve delinquencies. If delinquencies occurred between July 10 and August 7, they can be resolved through maturity extensions and repayment deferrals, after which new funds can be applied for.