The liquidity crisis at e-commerce platforms TMON and WeMakePrice, caused by payment delays to sellers, is drawing attention to the issue of refunds for travel products and gift certificates. Before the crisis, the two companies had focused heavily on selling travel packages and gift certificates at discounted rates. But unlike regular product purchases, consumers are having trouble obtaining refunds.
Some payment gateways (PGs) have withheld refunds for these products, stating they are “not obligated to provide refunds.” Travel agencies and voucher companies that sold products on these platforms have also deflected responsibility. Consumers who bought these products are anxious they won’t get any of their money back.
Financial authorities have encouraged PGs to process refunds on behalf of TMON and WeMakePrice following the liquidity crisis, as both platforms are currently unable to fulfill these obligations. Eleven PGs and credit card companies have started refunding consumers who purchased regular items. Refund processes are expected to be completed within a week.
PGs have initiated refunds because Article 19 of the Specialized Credit Financial Business Act requires PGs to comply with refund requests if goods or services are not delivered as promised. But PGs argue that travel products and gift certificates are exceptions to this rule. They claim that once a trip is confirmed by contract, it is binding, regardless of whether the trip takes place or the travel agent receives payment. Similarly, they state that the sales process for gift certificates concludes once a PIN is issued and delivered, leaving the issuer responsible for any refunds.
Travel agencies and voucher companies claim they cannot process refunds because they have not received payment from TMON and WeMakePrice. The issuer of Happy Money vouchers, which were promoted on these platforms, is facing default.
Consumers find themselves in a situation where they have already paid for the products, but their travel plans have been canceled, and the vouchers they purchased have become worthless, with no clear path to refunds.
Consumer remedies such as refunds have become a “hit or miss” ordeal. “I requested a refund through TMON and waited without high expectations, but luckily, I received my money back five days later,” said a 40-year-old consumer, surnamed Ahn, who purchased a 3 million won Saipan travel package from TMON via Toss Pay. Meanwhile, another consumer, Kim, 34, who purchased a 1.5 million won Vietnam travel package from TMON, has yet to receive a refund.
Naver Pay, Kakao Pay, and Toss Pay have been offering refunds to consumers who purchased travel products from TMON and WeMakePrice. “PGs operated by large corporations are concerned about their corporate image, so they are choosing to issue refunds,” said an industry insider.
The Credit Finance Association is reviewing whether PGs are legally obligated to refund TMON and WeMakePrice’s travel products and vouchers. Financial authorities are also investigating the validity of PG companies’ claims regarding their refund obligations.
