Photo : YONHAP News
Large e-commerce businesses will now have to settle payments with vendors within 20 days of each confirmed purchase.
The Fair Trade Commission(FTC) unveiled the new rule Friday as it announced revisions to the Act on Fair Transactions in Large Retail Business.
The revisions were undertaken to prevent liquidity issues such as those that occurred at TMON and WeMakePrice.
The new rule will apply to e-commerce firms whose profit from transactions exceeds ten billion won, or some seven-point-three million U.S. dollars, or whose transactions total more than 100 billion won.
The 20-day deadline was set after taking into consideration that the businesses subject to the new rule settle payments within a 20-day time frame on average.
The FTC decided to introduce a one-year grace period after the revisions are enacted to enable affected businesses to prepare.