Online Group Buying Scam Worth About 470 Billion Won... Police Send 13 Suspects for Prosecution

[Asia Economy Reporter Lee Jung-yoon] A group that operated a group-buying site and embezzled tens of billions of won in payment from consumers has been handed over to the prosecution.

According to the police on the 2nd, the Gangnam Police Station in Seoul sent 13 people, including Park Mo (34), the person in charge of operating the site, to the prosecution last September on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Act on the Regulation of Conducts Similar to Receipt of Deposits.

They are accused of operating group-buying sites such as Edgebebe and embezzling about 470 billion won from approximately 20,000 victims from early 2019 to December last year.

It is known that they deceived customers by claiming that the longer the delivery period for goods, the higher the discount rate, thereby creating victims. They reportedly used a 'Ponzi scheme' method, setting long delivery times, embezzling payment for goods received from customers, and later using money from new customers to cover the payment for goods that existing customers intended to buy.

Park and two others were sent to detention, and some have been brought to trial. The court froze assets worth about 180 billion won, which is part of the damage amount, through seizure and preservation.

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