TMON, WeMakePrice submit rescue plan to court

TIMON and WeMakePrice, which were involved in a large-scale unsettled payments incident, submitted a self-rescue plan to the Seoul Bankruptcy Court on Monday. The plan outlines normalizing the business by attracting new investment and reselling it within three years. This plan is separate from the establishment of a new corporation following the merger of TMON and WeMakePrice, which was previously announced by Qoo10 CEO Koo Young-bae.

Industry sources revealed that senior officials from TMON and WeMakePrice have approached private equity funds with proposals to repay debts and initiate restructuring efforts if investment funds are secured. According to the sources, three potential investors have already expressed interest. The companies have indicated a willingness to endure a temporary decrease in transaction volumes while focusing on reducing fixed costs.

To address delayed payment issues, immediate financial relief is necessary, amounting to 70-80 billion won. An accounting firm’s analysis suggests that WeMakePrice requires 25 billion won, while TMON needs nearly twice that amount. The proposed plan includes compensating partner companies for damages and repaying remaining debts over a three-year period, coinciding with business normalization efforts.

In response to the financial crisis, an emergency committee is organizing a “black umbrella rally” on Tuesday in front of TMON’s headquarters in Gangnam, Seoul, aiming to draw attention to the plight of affected consumers. Concurrently, a rehabilitation procedure council meeting involving government agencies and creditors is expected to discuss the future course of action. As of 6 p.m. on Sunday, the Ministry of SMEs and Startups reported receiving 747 applications for a total of 148.3 billion won in emergency stabilization funds from small businesses affected by the payment delays.


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