South Korea Supports Small Businesses Affected by Qoo10 Payment Delays

South Korea will provide $400 million in financial aid to small businesses affected by payment delays on Qoo10 e-commerce platforms. Founder Ku Young-bae pledged personal assets to compensate. Payment issues have led to an investigation, vendor backlash, and significant financial losses. Qoo10 aims to secure $50 million for remedies.

South Korea will provide $400 million in financial support to small businesses hit by payment delays on two Qoo10 e-commerce platforms, as the Singapore-based firm's founder pledged to use his assets to help compensate customers and vendors.

The delays triggered an investigation by South Korean financial authorities, leading some vendors to cut ties and prompting long lines of customers demanding refunds. Missed payments have grown to approximately 210 billion won ($152 million), according to government estimates.

Authorities will offer low-interest loans and extensions on existing loan and tax repayments. Vice Finance Minister Kim Beom-seok assured that all resources would be used to minimize the damage.

Qoo10 founder and CEO Ku Young-bae apologized, stating he would secure emergency liquidity through overseas funds or asset liquidation. However, affected vendors criticized the proposed remedies as insufficient.

(With inputs from agencies.)