Police Conduct 12-Hour Search of MergePlus Headquarters Amid 'Mass Refund Crisis' (Comprehensive)

The police investigation into Merge Plus, suspected of violating the Electronic Financial Transactions Act, has officially begun. On the afternoon of the 25th, investigators from the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency were seen carrying seized items out of Merge Plus headquarters in Yeongdeungpo-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] The police conducted a search and seizure at the headquarters of Merge Plus, which caused a large-scale refund incident, and secured related materials.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency executed search warrants on five locations, including the headquarters of Merge Plus, Merge Support, and payment agencies, suspected of violating the Electronic Financial Transactions Act, starting at around 10:15 a.m. on the 25th. The search and seizure reportedly ended at around 10:10 p.m., approximately 12 hours later. The police are known to have seized computer server data from Merge Plus.

On the same day, the police imposed travel bans on three individuals: Kwon Nam-hee, CEO of Merge Plus (37), Kwon Kang-hyun, director (64, former executive at Samsung Electronics), and Kwon Bo-gun (34), known as a co-founder. They have been booked on charges of violating the Electronic Financial Transactions Act. Following a request for investigation from the Financial Supervisory Service, the police are examining allegations that Merge Plus conducted prepaid business operations without registration with relevant authorities. A police official stated, "Since the amount of damage is large and many victims have occurred, we will continue the investigation swiftly and strictly."

The National Police Agency recently received an investigation request from the Financial Supervisory Service regarding allegations of violations of the Electronic Financial Transactions Act by Merge Plus, the operator of Merge Point. On the 18th of this month, the National Police Agency delegated the case to the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency.

Merge Plus attracted up to one million members by promoting an "unlimited 20% discount." On the 11th, Merge Plus abruptly announced the suspension of sales of cash-equivalent "Merge Money" and a reduction in its usage locations, citing a request from financial authorities to register as an electronic financial business. Since then, confusion has continued as users demanding refunds have flocked to the Merge Plus headquarters in Yeongdeungpo, Seoul.

This content was produced with the assistance of AI translation services.