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| ▲ The TMON headquarters in Seoul's Gangnam district is seen on July 28, 2024. (Yonhap) |
(LEAD) e-commerce platform-prosecution
(LEAD) Consumers file complaint against owner, executives of TMON, WeMakePrice
(ATTN: CHANGES headline; UPDATES with complaint filed by consumers)
SEOUL, July 29 (Yonhap) -- Consumers filed a complaint against the owner of e-commerce platforms WeMakePrice and TMON and other executives Monday in connection with payment delays to consumers and vendors amid liquidity woes.
The complaint was filed against five people, including Ku Young-bae, head of Singapore-based Qoo10, which owns TMON and WeMakePrice, as well as four other executives of the two platforms on charges of fraud, embezzlement and breach of trust.
The Seoul Gangnam Police Station said the case has been assigned to an investigation department.
"We will question related people according to relevant procedures," an official said.
But sources said the case could be referred to the financial crime unit of the Seoul Metropolitan Police Agency, given the scope and gravity of the case.
Prosecutors have also begun looking into whether any legal charges can be applied to the two platforms.
An anti-corruption department of the Seoul Central District Prosecutors Office launched the legal review in preparation for potential complaints from financial regulators and victims of the case that officials said caused massive damage to victims and disrupted market order.
"We are looking into various issues as much as this case merits," an official said.
The two South Korean marketplaces have been in a crisis after failing to make payments to their vendors amid liquidity issues by their owner, Singapore-based Qoo10, reportedly due to aggressive merger deals. Hundreds of customers have also flocked to the headquarters of TMON and WeMakePrice to demand a refund.
If the two marketplaces were found to have maintained the contract with sellers and sold goods despite knowledge of their inability to repay the sales profits in time, they could be charged with fraud, according to judicial officials.
Officials also suspect the management of TMON and WeMakePrice could be charged with embezzlement and breach of trust if they used funds that belonged to the sellers for other purposes in an attempt to expand their business.
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