The FTC also plans to require them to deposit at least half of the sales proceeds in financial institutions to ensure that sellers can recover some of their money if a platform goes bankrupt.
The FTC announced these law revisions as part of efforts to prevent e-commerce payment delays following a settlement crisis involving the online platforms WeMakePrice and Tmon, which has been unfolding since early July.
Koo Young-bae, CEO of their Singapore-based parent company Qoo10, is suspected of diverting funds to support corporate acquisitions and efforts to list the logistics unit Qxpress on Nasdaq.
The new rules apply to online intermediaries with domestic transaction sales of 10 billion won (US$7.3 million) or more, or transaction volumes of 100 billion won or more.
These businesses must settle with sellers within 20 days of purchase confirmation, either directly or through payment gateways.
In cases involving services like accommodations or performances that are provided after purchase, the settlement timeframe is adjusted to within 10 days of the service date.
Platforms directly managing sales proceeds must deposit at least 50 percent in a financial institution or obtain payment guarantee insurance. These funds cannot be seized, transferred or used as collateral.
If a platform goes bankrupt, sellers will be paid first, before other creditors.
The FTC said a one-year grace period will be provided after the proposed revisions are promulgated.
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