TMON, WeMakePrice raided for delayed vendor payments amid liquidity crisis

Prosecutors raided the headquarters of TMON and WeMakePrice on Thursday as part of an investigation into the e-commerce platforms' delayed payments to vendors sparked by a liquidity crisis engulfing the companies. The Seoul Central District Prosecutors Office sent investigators to the two firms' headquarters, the home of Ku Young-bae, the CEO of their parent firm, and other locations to seize evidence. Earlier this week, the open-market operators filed for court receivership after failing to repay vendors using their platforms. The government estimates the overdue payments to amount to 210 billion won (US$153.4 million). TMON and WeMakePrice have been accused of continuing their business dealings despite knowing that timely payments to vendors were impossible due to liquidity issues. Allegations under investigation also include that company executives misappropriated funds intended for repaying vendors while pursuing aggressive mergers. Source: Yonhap News Agency