South Korea to provide lowinterest loans, loan extensions
TMON and WeMakePrice filed for rehabilitation Yonhap
Qoo10 to secure emergency funds, founder pledges own assets
Missed payments have grown to around 152 mln, govt estimates

SEOUL, July 29 Reuters South Korea will provide 400 million in financial support to small businesses hit by payment delays on two Qoo10 ecommerce platforms and the Singaporebased firm39;s founder pledged to use his own assets to help compensate customers and vendors.

Seoulbased TMON and WeMakePrice on Monday filed for corporate rehabilitation in the Seoul Bankruptcy Court, Yonhap news agency reported, after failing to make payments to merchants using their platforms since early July, with Qoo10 saying the problem was triggered by a glitch in its payment system.

The payment delays have prompted South Korean financial authorities to launch an investigation, some vendors to cut ties and long lines of customers at offices of both platforms last week demanding refunds.

Missed payments by the ecommerce platforms have grown to around 210 billion won 152 million, the government estimates.

South Korean financial authorities said they will provide lowinterest loans for affected small businesses as well as extensions on repayments of existing loans and on tax payments.

The government will utilise all available resources to minimise the damage, Vice Finance Minister Kim Beomseok told reporters.

Later on Monday, South Korea39;s prosecutor…