[Interview] 'Timeff Victims' Lawyer' Shim Junsup: "The Qoo10 Incident Is Essentially a Ponzi Scheme"

Preparation for Small Creditors' Opinion Submission
Victim's Complaint Filed Twice

Attorney Shim Joon-seop, who is conducting a class-action lawsuit for victims of TMON and WEMAKEPRICE, stated on the 5th regarding the court's approval of the Autonomous Restructuring Support (ARS) program application, "In the past, in the Hynix Semiconductor workout case, small creditors with claims under 5 billion KRW received full principal and interest payments," adding, "We are recruiting people free of charge to be entrusted to Law Firm Shim so that the affected vendors can participate in the creditors' council and express their opinions."

Lawyer Shim Junsup is introducing the law firm Shim.
[Photo by Law Firm Shim]

In an interview with Asia Economy that afternoon, Attorney Shim said, "Unlike typical workouts or ARS, the court in this case instructed that the creditors' council should include a balanced representation of vendors, credit card companies, and other creditors," explaining this point.

ARS is a system supported by the court to facilitate voluntary restructuring negotiations between debtors and creditors before the commencement of rehabilitation proceedings. Attorney Shim explained, "TMON and WEMAKEPRICE will discuss ways to normalize the company through various methods such as debt adjustment, attracting new investments, and company sales together with creditors," adding, "While external funding or mergers and acquisitions may result in debt reduction and favorable outcomes for creditors, there is also a risk that negotiations may be disadvantageous or fail, causing delays."

If ARS negotiations break down, rehabilitation proceedings will commence. Attorney Shim said, "If more than half of the creditors agree, a pre-packaged rehabilitation plan (P-plan) will proceed; otherwise, a general corporate rehabilitation process will be initiated," emphasizing, "Upon the court's decision to commence rehabilitation proceedings, a manager will be appointed, and procedures such as submitting creditor lists, filing claims, and investigating claims will be conducted to confirm debts and claims. Vendors must file their claims within the deadline; otherwise, the claims will be extinguished, resulting in a total loss, so caution is necessary."

Lawyer Shim Junsub is reviewing case materials. [Photo by Law Firm Shim]

Currently, the refund process for consumers who purchased products from TMON and WEMAKEPRICE is also sluggish. Attorney Shim pointed out, "It appears that electronic payment gateway (PG) companies have taken the position that travel products such as airline tickets and accommodations sold on TMON and WEMAKEPRICE, as well as gift certificates like Happy Money, are not subject to refunds," adding, "Resolving the situation will not be easy. However, PG companies cannot completely evade responsibility."

Attorney Shim, who is also one of the consumer victims, has filed complaints with the police twice. He explained, "When I first saw the news, I thought, 'Could it be me too?' and went to the TMON site. When I tried to register the account for a refund, an error occurred, and since many others had similar issues, I provided guidance on how to respond, such as disputing credit card charges, through YouTube," adding, "As a consumer, I was angry and prepared to file a police complaint. I recruited complainants thinking that together with other victims, we could raise a stronger voice and contribute socially."

He specifically pointed out that the TMON and WEMAKEPRICE incident was essentially a "Ponzi scheme." Attorney Shim criticized, "A Ponzi scheme is a fraudulent method of paying returns to existing investors with funds from new investors. Despite the worsening financial condition of TMON and WEMAKEPRICE, they acted as if they were operating normally," adding, "They continued to operate services by pretending to be able to pay vendors for sales proceeds even though they lacked the ability, encouraged extending settlement cycles, and even delayed settlement payments citing system errors while continuing to collect consumer payments."

Attorney Shim said, "I was attracted to the social influence and expertise of the law and chose the path of a lawyer. I work with a desire to serve the socially vulnerable," adding, "I always want to be a lawyer who actively approaches first, empathizes, and provides genuinely helpful solutions without being bound by existing laws and precedents."

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