SINGAPORE: The police are investigating Singapore-based e-commerce system Qoo10 after nearby firms were hit by transaction difficulties, prompting some irritated vendors to turn to a claims court to get help.
When two of Qoo10’s Seoul-based systems failed to make repayments to South Korean merchants in July, warning signs of trouble started to show. The two systems - , TMON and WeMakePrice- eventually filed for , business treatment in the Seoul Bankruptcy Court.
North Korean economic officials have launched an investigation.
In response to CNA’s queries, the Singapore Police Force said on Thursday ( Sep 12 ) that reports were lodged against Qoo10 and investigations are ongoing.
One of the vendors who used Qoo10 since 2014 to buy child and maternity products, Mr. Liu Wei Guo, was one of the ones who filed a police report after the delays in payment negotiations raged on.
According to Mr Liu, it usually takes two to three weeks for payment to reach him, but it has been almost , two months since he asked to withdraw around S$ 21, 000 ( US$ 16, 100 ) worth of sales proceeds from his Qoo10 seller account. The deadline for the money to travel through had been set for August 5, and the request was made on July 19.
Additionally, his bank account has n’t received the funds received from subsequent requests.
In contrast, Mr Liu said Qoo10 is likewise holding in payment more than S$ 11, 000 worth of his profits money that it has not made accessible for him to retreat.
Eight of the 11 contractors CNA spoke with confirmed that they were still awaiting payment from Qoo10. Some people are awaiting a few hundred dollars, while others are owed tons.  ,
On Tuesday evening, a contractor who had been awaiting payment requests on August 18 and Sep 1 was paid.  ,
Firms halt selling on QOO10.
When online purchasing gained popularity, Qoo10 was one of the first e-commerce systems in Singapore.  ,
On its website, Qoo10 describes itself as Asia’s leading online industry that operates in five areas in the region.
As the repayment difficulties continue, many suppliers- big and small- have pulled products from the program.
Popular brands like Gold Kili, the moment drink retailer, and   are included. A worker claimed that the firm had a “dispute” and that it had decided to stop providing its services on Qoo10. She did not specify what the debate was.
Fragrance, which sells bak kwa and other local treats, has even removed products for sale on its Qoo10 website.  ,
We may continue to monitor the situation and wait for more information from Qoo10, Fragrance told CNA, adding that purchases that have already been placed will be fulfilled.  ,  ,
Chinese Ban Niang, an employee who sells a range of traditional Chinese medicine and foodstuff, reported that it had even stopped placing orders on Qoo10 as a result of the delayed payment processing.  ,
FRUSTRATED VENDORS FILE States
Smaller sellers, some of whom have contacted the State Courts ‘ Small , Claims Courts to try to get their money back, are perhaps more difficult to hit.
Ms Angela Lee, the activities director of Amberlys Cakes &, Plants, has been waiting for payments requested in July, August and September. In overall, the unfulfilled payments amount to roughly S$ 2, 400.  ,
She filed a small state against Qoo10 in soon August.
Vendors CNA spoke to claimed to have tried emailing the business, but instead received a common response and had no idea when the payment may be made.
Mr Liu, for example, sent four letters to Qoo10. Because the program owes him too much money to make a little claim, he turned himself in to the police in late August.  ,
Workers ‘ Party Member of Parliament Louis Chua has been asked in a political question whether Singapore’s regulators are looking into the matter.  ,
Gan Kim Yong, the minister for trade and industry, stated in his comment on Tuesday that the government had received feedback from a number of retailers regarding repayment difficulties.
We have alerted Qoo10 to these incidents and requested that they take immediate action to fix the difficulties with the damaged retailers, he said.
The state is also keeping tabs on innovations involving Qoo10’s companies in South Korea to see if and how this might impact its activities in Singapore.
Qoo10 did not respond to CNA’s messages for opinion. Calling to its business number went unanswered.
This writer was prohibited from entering Qoo10’s company on the 18th ground on Wednesday when CNA visited the tower where the company is located. A waiter said Qoo10 just asked the property’s management not to let any visitors to its business.  ,