South Korea's Urgent Liquidity Support for Small Businesses Amid E-commerce Payment Delays

South Korea's financial authorities announced a liquidity support of 560 billion won ($404.55 million) to aid small businesses affected by payment delays from e-commerce platforms TMON and WeMakePrice. An investigation into these platforms, owned by Qoo10, has been initiated. Qoo10 pledged $50 million but hasn't detailed the plan.

South Korea's financial authorities will inject at least 560 billion won ($404.55 million) in liquidity to support small businesses grappling with payment delays from e-commerce platforms.

The finance ministry affirmed the commitment on Monday, assuring, "The government will utilise all available resources to minimise damage," according to Vice Finance Minister Kim Beok-seok.

The move follows an investigation into TMON and WeMakePrice, e-commerce firms owned by Singapore-based Qoo10, which failed to pay vendors on time. Although Qoo10 pledged $50 million to address the issue, no detailed mitigation plan has been provided, the Financial Services Commission noted on Sunday.

(With inputs from agencies.)