[NewsSpace=Jack Moon] Commercial real estate industry is concerned as the aftermath of the TMON-WeMakePrice crisis continues with partner companies filing for bankruptcy protection one after another.

As sales plummet due to delayed settlements, an increasing number of small and medium-sized partners and suppliers are unable to withstand the pressure and are filing for bankruptcy protection. This led to a sharp rise in companies downsizing their offices or closing them altogether to cut costs. Vacancies near Nonhyeon and Yeoksam stations are rapidly increasing as most e-commerce-related partners are concentrated around the area.

According to the industry and the Financial Supervisory Service on the 19th, while the estimated unsettled amount for TMON and WeMakePrice partners and suppliers reached 1.3 trillion won, the vacancy rate in the office market rapidly rose around Nonhyeon and Yeoksam stations in Seoul's Gangnam-gu - the primary location for these businesses.

Those that can still manage are reducing staff and downsizing offices, but those who cannot are closing their offices entirely. In fact, Company A, which was a major fashion partner of TMON, vacated its 300 py office near Gangnam Station due to financial difficulties caused by delayed settlements and reduced its staff by 30%. The company is currently operating from a 50-py office in Nonhyeon-dong. Beauty brand Company B, which had an exclusive contract with WeMakePrice, saw its sales plummet due to delayed settlements and cleared out its flagship store and office in Cheongdam-dong, switching to a work-from-home system.

As the e-commerce market falters, not only partner companies but also logistics centers are facing operational difficulties and considering repurposing. Logistics center C, located in Gangdong-gu, Seoul, considers repurposing to a data center as its utilization rate has fallen below 50% due to reduced volume from TMON-WeMakePrice.

A real estate agent near Yeoksam Station said, "Recently, as tenants in Yeoksam and Nonhyeon areas are quickly moving out, building owners are facing pressure to lower rents. Some building owners are considering or proposing rent reductions or offering various amenities as incentives to attract tenants."

Industry experts predict that after the TMON-WeMakePrice crisis, e-commerce partners and suppliers concentrated in Gangnam and Nonhyeon are likely to disperse to areas with cheaper rents.