Prosecutors raid HQs of TMON, WeMakePrice amid liquidity crisis at Qoo10

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The prosecution began raiding the e-commerce platforms TMON and WeMakePrice on Thursday over delayed payments to sellers amid a liquidity crisis at their parent firm, Qoo10.
The raids targeted the headquarters of both platforms as well as the home of the Qoo10 CEO Ku Young-bae.
This comes three days after the platforms filed for court receivership.
The government estimates the overdue payments to be 2-hundred-10 billion Korean won or around 1-hundred-53 million U.S. dollars, but this could escalate to one trillion won with future payments.
Prosecutors have charged CEO Ku with fraud, embezzlement, and breach of trust.
TMON and WeMakePrice are accused of continuing business despite knowing they couldn't make timely payments to vendors due to liquidity problems.

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2024-08-01, 12:00 (KST)