KKR-Backed Qoo10 Draws Korean Probe for ‘Illegal’ Payment Delays

The Korean units of KKR-backed e-commerce company Qoo10 are facing an investigation by South Korean prosecutors after the nation’s financial watchdog questioned the legality behind ongoing payment delays to merchants and consumers.

Financial Supervisory Service Governor Lee Bokhyun said at a parliamentary subcommittee on Tuesday that the investigation was requested as some “illegal elements”were found while tracking funds at Qoo10. Key personnel from the companies have also been asked to be banned from traveling outside the country.

When asked by a policymaker about the potential size of the damage caused by Qoo10’s payment delays, Lee said “more than one ...