"Travel First, Pay Later" Scam: Travel Agency CEO Gets 7 Years for Defrauding 4,000 Victims of 12 Billion Won

Court States: "Victims Suffered Great Loss... No Compensation Provided"

Jeonju District Court exterior. Jeonju District Court website

The head of a travel agency who lured customers with a post-payment travel scheme and then embezzled their money has been sentenced to prison.

On April 30, the Jeonju District Court Criminal Division 4, presided over by Chief Judge Kim Mikyung, sentenced Mr. A (58), who was indicted on fraud charges, to seven years in prison. It was found that he embezzled customers' money through travel packages that allowed clients to travel first and pay later using a post-payment system.

The company, a post-payment travel agency, was founded in Jeonju, North Jeolla Province in 2007 and went on to open about 20 branches nationwide. Investigations revealed that Mr. A sold products to victims by promising, "If you pay a certain amount each month, you can go on a trip without paying the full travel cost."

However, when customers were unable to travel due to COVID-19 and other reasons and requested refunds, it was found that most victims did not receive their money back. The amounts that customers failed to recover ranged from hundreds of thousands of won to tens of millions of won, with the total amount reaching approximately 12 billion won.

The court stated, "The victims diligently paid their membership fees, saving little by little, dreaming of their first overseas trip, a family trip, or a retirement trip. However, contrary to their expectations, the victims were unable to travel and did not receive any cancellation fees."

The court continued, "The sense of loss, emptiness, and betrayal felt by the victims is just as great as the financial damage they suffered. Although the defendant claims to have made efforts to compensate the victims after the investigation, no compensation has yet been made, and therefore a severe punishment is necessary."

Because this travel agency, founded in Jeonju in 2007, operated about 20 branches nationwide, the number of victims reached approximately 4,000 people.

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