South Korea to Aid Small Businesses Amid Qoo10 Payment Crisis

South Korea will provide $400 million in support to small businesses affected by payment delays at Qoo10 e-commerce platforms. Financial authorities are investigating, vendors are protesting, and the firm's founder has pledged his assets to help compensate. The government aims to utilize all resources to mitigate the damage.

South Korea has announced a $400 million financial support package for small businesses impacted by payment delays at Qoo10's e-commerce platforms. The delays, caused by a payment system glitch, have affected two South Korea-based platforms, TMON and WeMakePrice, since early July.

The issue has ignited investigations by South Korean financial authorities and spurred protests from both vendors and customers seeking refunds. The government estimates that the total missed payments amount to around 210 billion won ($152 million). Vendors and small businesses will receive low-interest loans, loan repayment extensions, and tax payment deferrals.

Qoo10's founder and CEO, Ku, has apologized and pledged to use his personal assets and stakes as collateral to secure emergency liquidity. The firm plans to raise $50 million to address the damages but has yet to present a detailed plan to authorities. Qoo10 operates in several other countries, including Japan, North America, and China.

(With inputs from agencies.)