- Qoo10’s CEO pledges personal assets amid crisis.
- Korean government intervenes.
- Small merchants await compensation.
A $58 million promise
Qoo10’s founder and CEO, Young-bae Ku, has made a bold move to address the company’s liquidity crisis.
During an emergency hearing in South Korea, Ku committed to securing approximately $58 million from his personal assets to compensate affected customers and vendors.
The crisis has impacted about 60,000 small merchants selling through Qoo10’s Korean subsidiaries, TMON and WeMakePrice.
Both platforms have filed for court receivership after failing to make payments to merchants this month, marking a stark contrast to TMON’s previous $1.4 billion valuation.
Government to the rescue
In response to the crisis, South Korea’s government has stepped in, offering $400 million in financial support to affected vendors.
Additionally, authorities are providing low-interest loans and options for extending repayments on current loans and taxes to mitigate the impact on small businesses.
