Prosecutors Summon Timf CEO Gu Young-bae Over 'Timf Incident'... "I Will Cooperate Sincerely"

Two Months After Investigation Launched... Ku Young-bae Claims "Aggressive Marketing, Not Fraud"

Ku Young-bae, CEO of Qoo10 Group, is undergoing a summons investigation by the prosecution on the 30th. This comes about two months after the prosecution formed a dedicated investigation team at the end of July to intensify the investigation following the unsettled payment crisis at Tmon and Wemakeprice.

The Seoul Central District Prosecutors' Office Tmon·Wemakeprice dedicated investigation team (led by Chief Prosecutor Lee Jun-dong) has summoned CEO Ku since the morning as a suspect on charges including fraud, embezzlement, and breach of trust, and is currently investigating him. Around 8:55 a.m., Ku entered the prosecution office and stated, "I will sincerely cooperate with the investigation."

Ku is accused of embezzling approximately 50 billion KRW of seller settlement funds from Tmon and Wemakeprice to enable Qoo10 to acquire the overseas shopping mall 'Wish,' and engaging in fraudulent business practices by selling gift certificates at a discount despite being unable to pay the sales proceeds properly, effectively using a Ponzi-like scheme.

[Image source=Yonhap News]

The investigation team has so far identified fraud amounts totaling 1.4 trillion KRW and embezzlement of 50 billion KRW. After forming the dedicated investigation team on July 29, the prosecution immediately imposed travel bans on Ku and others, and on August 1, conducted comprehensive raids on Ku's residence and the headquarters of Tmon and Wemakeprice, intensifying the investigation. Previously summoned group and affiliate officials reportedly testified indicating Ku as the ultimate person responsible for the delayed settlements.

However, Ku is known to deny the charges. When he appeared before the National Assembly's Political Affairs Committee in July, he stated, "Basically, structural deficits had accumulated since acquiring Tmon, and competition with Ali and Temu intensified. I believed the structural solution to these problems was global expansion." He also said, "I have risked everything for 15 years to grow the business and have not embezzled a single penny for personal gain." Regarding fund management, he explained, "It was not done with any fraudulent intent but was a behavior accumulated over more than ten years. Due to intensified competition, aggressive marketing was conducted."

Based on various evidence and testimonies confirmed so far, the prosecution is expected to verify the timing when Ku recognized the risk of unsettled payments and the extent of his direct instructions.

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