CEOs of beleaguered TMON, WeMakePrice questioned over massive payment delays

Prosecutors questioned the CEOs of e-commerce affiliates TMON and WeMakePrice on Thursday as part of an investigation over massive payment delays to vendors on their platforms.

TMON CEO Ryu Kwang-jin and WeMakePrice CEO Ryu Hwa-hyun appeared at the Seoul Central District Prosecutors Office for questioning on suspicions of embezzlement, fraud and other illegal acts.

In late July, the e-commerce platforms owned by Singapore-based Qoo10 filed for court receivership due to liquidity problems that resulted in massive delayed payments to vendors on their platforms.

The government estimates that overdue payments amount to 1.28 trillion won ($959.6 million), affecting around 48,000 vendors.

Prosecutors have since launched an investigation, accusing the CEOs of allowing the parent firm, Qoo10, to misappropriate 50 billion won from TMON and WeMakePrice's corporate funds to finance the takeover of the American online e-commerce platform Wish.

They allegedly deceived vendors into continuing to do business on their platforms, even though payments to vendors could not be made as expected.

Speaking to the press before the questioning, the TMON CEO claimed he had not seen any prior signs of potential payment delays and denied any involvement in Qoo10's acquisition of Wish.

Following Thursday's session, prosecutors are expected to call in Qoo10 CEO Ku Young-bae soon for questioning. (Yonhap)