Coupang, KB Kookmin to start early payout for virus-hit SMEs

E-commerce giant Coupang said Friday it has partnered with KB Kookmin Bank to launch early payout services for merchants, through which small and medium-sized business owners will receive payment for their sales in advance of the regular payday.

Through the early payout on Coupang’s Marketplace, the nation’s biggest online platform for merchants, the e-commerce firm aims to financially support the coronavirus-hit SMEs, who are in need of cash either to pay their employees’ salaries or boost production to cope with an increase in sales orders. 

Previously, the merchants on the Marketplace platform were paid for their sales on a designated date. The new services, however, allow them to receive money earned from their sales earlier than before just by paying a relatively low interest rate of 4.8 percent annually. 

Available for the business operators, who are registered at the company’s online market and qualified by KB Kookmin Bank, Coupang’s early payout program will give nearly 90 percent of the total sales to the store owners a day after their application at the earliest, officials explained.

“The company’s financial support in cooperation with KB Kookmin will help our cash-strapped sellers in the wake of the novel coronavirus outbreak,” said Tiffany Gonzalez, a senior director at Coupang Marketplace.

Meanwhile, businesses can apply for the early payment program at KB Kookmin Bank’s branches across the nation, and those who hold business accounts at the bank are eligible for the online application process.

By Choi Jae-hee (cjh@heraldcorp.com)