After reportedly firing over 80% of staff, Qoo10 now under investigation for delayed payments

SINGAPORE: Qoo10 made the news again recently after the company was said to have laid off more than 80 per cent of its employees in late August.

Qoo10 and Qxpress are both being investigated by police in Singapore following complaints from vendors regarding delayed payments to the tune of thousands of dollars as well as disruptions to deliveries by Qxpress, The Straits Times reported on Friday (Sept 13).

While Qoo10 has its headquarters in Singapore, it used to be known as GMarket and was founded in South Korea in 2000.  As an e-commerce platform mainly serving small or medium-sized businesses, Qoo10 operates in Singapore, Indonesia, Malaysia, mainland China, and Hong Kong.

The Singapore Police told ST that reports have been filed against both entities and that it has launched an investigation.

The company has yet to make a statement on the matter.

Qoo10 is also facing legal troubles in South Korea because two of its platforms have reportedly failed to pay merchants since early July.

The company said that TMON and WeMakePrice did not pay vendors due to problems with its payment system.

The authorities in South Korea investigated Qoo10 as its platforms had missed nearly S$200 million worth of payments. The government has given almost S$520 million in financial support to the small businesses affected by the delayed payments.

CNA said on July 29 that the company’s founder, Ku Young Bae, will be using his own resources to help affected customers and sellers.

Vendors who spoke to CNA and ST have said they’ve been waiting for thousands of dollars worth of payments, with some saying they are no longer using the platform.

In a bid to get their money back, others have submitted filings at the Small Claims Tribunals of the State Courts.

Workers’ Party Member of Parliament Louis Chua (Sengkang GRC) raised a question on the matter in Parliament recently, asking the Ministry of Trade and Industry if the government is working with South Korea on its investigations into the company and conducting its own investigations.

He wrote in a Facebook post on Thursday (Sept 12) that a resident from Sengkang is a vendor on the platform and had shared the difficulties that he had been facing in receiving payments from Qoo10.

“I’m concerned that SMEs and sole proprietors may face difficulties getting their monies back,” he wrote.

In response to Mr Chua, Minister for Trade and Industry Gan Kim Yong said, “We have brought these cases to Qoo10’s attention and requested that they take prompt action to resolve the delays with the affected merchants.” /TISG

Read also: Qoo10 lays off over 80% of Singapore employees amid financial struggles