Asia Tech Wire (July 29) -- The South Korean government intends to put $405 million to settle the payment delays of Singaporean e-commerce firm Qoo10.

Kim Beom-seok, first vice minister of Economy and Finance, convened a working group meeting of the relevant departments on Monday, introducing a solution of placing liquidity funds of 560 billion won ($405 million) in the case of payment delays of Qoo10's South Korean e-commerce platforms Wemakeprice and TMON.

The situation deteriorated sharply as the two e-commerce platforms defaulted on payments to merchants and failed to give regular refunds to customers.

Qoo10 had previously called in accounts payable from Wemakeprice and TMON as it overexpanded its business, leading to liquidity difficulties and massive arrears at its subsidiaries.