Korean e-commerce site ”files for corporate rehabilitation to minimize consumer damage”

On the 29th, South Korean social commerce companies "TMON" and "WEMAKEPRICE", which have been causing problems with delayed payment of sales revenue, filed suit in court.
Regarding the filing for rehabilitation, the company said, "We were forced to file for rehabilitation as a measure to prevent the current vicious cycle in which one problem creates and spreads other problems, and to minimize damage to sales members and consumers.
The two companies announced their position on the same day, saying, "There was a limit to how much we could overcome the problem of worsening cash flow due to the suspension of transactions and the withdrawal of members."
They said, "Through the corporate rehabilitation procedure, we will normalize the business and ultimately ensure that our creditors, the sales members, and our members, the consumers, are not harmed," and added, "In the process, we will propose a bone-chilling rescue plan."
"The court will apply for the new Autonomous Restructuring Assistance Program (ARS Program) that is currently being implemented within the corporate rehabilitation system, and the company will be immediately forced to restructure," they said.
"We will actively consider whether it is possible to more proactively pursue fundraising through restructuring funds and other methods compared to the current method of initiating procedures," he added.
This is a system whereby the court puts aside the start of compulsory corporate rehabilitation procedures and first supports the company and creditors in autonomously negotiating restructuring.
"We are committed to maintaining a responsible attitude and dedicating all our company's capabilities to this project."