A 15 Million Won Poem for 'Air Jordan 1 Dior' Offered at 2.4 Million Won?

Former Nike Employee Sentenced to 8 Months in Prison for Fraud Charges

Nike and the French luxury brand Dior collaborated last year to celebrate the 35th anniversary of the Air Jordan sneaker release and the launch of Dior's first men's collection in the United States with the 'Nike Air Jordan 1 Dior' [Image source=AP News].

[Asia Economy Reporter Seongpil Cho] Nike Air Jordan 1 Dior. This product is a collaboration between Nike and the French luxury brand Dior to commemorate the 35th anniversary of the Air Jordan sneaker release and the launch of Dior's first men's collection in the United States last year. The original retail price was about 2.4 million KRW, but with only around 8,000 pairs limited worldwide, the resale price soared up to 15 million KRW. A man in his 50s who swindled over 50 million KRW by promising to get this product at the original price was recently sentenced to prison by the court. This is a case of punishment for crimes exploiting the sneaker investment (a portmanteau of sneakers and investment) craze sweeping South Korea.

Judge Kang Hyuk-sung of the Seoul Central District Court Criminal Division 7 sentenced A (50) to 8 months in prison on charges including fraud. However, Judge Kang did not detain him in court, stating, "There is no risk of flight, and I will give an opportunity to restore the damage and reach a settlement."

In June last year, A approached Mr. Kim at a board game cafe in Gangnam-gu, Seoul, claiming he could get the Air Jordan 1 Dior for 2.4 million KRW per pair. At that time, it was about a month before the Air Jordan 1 Dior was released. Only 8,000 pairs were produced in limited quantity and were to be sold to general consumers through a lottery system. A deceived Mr. Kim by saying he was an employee at Nike and had connections with staff at the U.S. headquarters who could secure products for VIPs in advance.

Mr. Kim fell for A's trick and handed over a total of 51 million KRW in three installments from July to August that year. Due to the collaboration with a luxury brand and the rarity of the limited edition, the trading price of the Air Jordan 1 Dior had risen to 15 million KRW. Mr. Kim thought there was enough margin if he resold it. This was so-called sneaker investment, making profits by reselling limited edition sneakers.

However, A had resigned from Nike in May that year and was working various day jobs. He had no acquaintances at Nike's U.S. headquarters. He said he originally intended to use the money received from Mr. Kim for a trip to the U.S. In August, after losing all his money gambling in the U.S., A asked Mr. Kim for help again. He demanded an additional 18 million KRW, offering to hand over 10 pairs of Air Jordan 1 Dior he had purchased for himself. Mr. Kim, who had already handed over more than 50 million KRW without even seeing the Air Jordan 1 Dior, immediately rejected this proposal. Eventually, A was indicted on charges of fraud and attempted fraud and stood trial.

A admitted all charges during the trial. Two days before the sentencing hearing, he also submitted a letter of apology. Admission of guilt and sincere remorse in court are mitigating factors. However, since A never received forgiveness from Mr. Kim, he could not avoid a prison sentence. If A fails to restore the damage and reach a settlement with Mr. Kim during the appeal trial, this sentence is likely to be upheld. As of the morning of the 25th, the last day for filing an appeal, A has not yet submitted an appeal.