Prosecutors Indict Former Allets CEO Without Detention for Sudden Closure Without Settling Payments

Charged with Fraud under the Act on the Aggravated Punishment of Specific Economic Crimes

The former CEO of Allets, an online shopping mall accused of abruptly shutting down operations without settling sales payments totaling tens of billions of won with partner vendors, has been brought to trial.

Seoul Eastern District Prosecutors' Office, Songpa-gu, Seoul. Yonhap News Agency.

On May 21, the Criminal Division 4 of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Kim Hyung-Geol) announced that it had indicted Park Sung-Hye, former CEO of Interstella, the operator of Allets, without detention, on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Electronic Financial Transactions Act.

According to prosecutors, Park was indicted on charges of concealing the risk of being unable to pay vendors due to Allets' deteriorating financial situation, and continuing to collect sales proceeds from partner vendors, thereby embezzling the funds.

Previously, in August 2024, Allets posted a notice on its website stating, "Due to unavoidable business circumstances, the service will be terminated as of August 31," and then abruptly ended its shopping mall service.

The police received complaints from vendors and consumers who suffered damages due to Allets’ delayed payments and refunds, and launched an investigation. In May last year, the police referred Park, the former CEO, to the prosecution without detention.

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