The government and local municipalities will provide an additional 430 billion won in liquidity to vendors affected by payment delays at the TMON and WeMakePrice online shopping platforms.

The additional fund will increase the government’s total financial support, including loans, to one-point-six trillion won, up from one-point-two trillion won proposed earlier this month. 

The finance ministry announced the decision on Wednesday during a meeting with economy-related ministers, after discussing measures to address the settlement failures by the e-commerce platforms. 

The government has also decided to increase loans for affected vendors, provided by the Korea SMEs and Startups Agency, from 30 billion won to 100 billion won, which will allow more vendors to access loans of up to one billion won at an interest rate of three-point-four percent.  

Liquidity from an emergency management stability fund, supported by local governments, will also be increased from 640 billion won to over one trillion won. Affected vendors will be able to secure loans directly from local governments at interest rates lower than the market rate.