Etoos CEO Faces Supreme Court Judgment for Defaming Competitor Using 'Comment Albas'

[Asia Economy Reporter Baek Kyunghwan] The Supreme Court is set to deliver its final verdict on executives of a famous entrance exam education company who were prosecuted for hiring 'comment part-timers' to post comments criticizing competitors.

On the 28th, the Supreme Court's 2nd Division (Presiding Justice Min Yusook) will hold a sentencing hearing at 10 a.m. for Kim Hyungjoong, CEO of Etoos, who was indicted on charges including obstruction of business.

The prosecution has found that from May 2012 for over five years, Kim and others signed a contract worth around 1 billion KRW with viral marketing company A to promote their own instructors and post about 200,000 posts and comments criticizing competitors' instructors. In particular, the so-called 'comment part-timers' posted comments intensively on internet sites and communities frequently visited by exam takers, following A company's guidelines.

The first trial court judged that Executive Director Jeong, who operated the online business sector at Etoos, was responsible and sentenced him to two years in prison with a three-year probation. Meanwhile, CEO Kim was acquitted.

The court pointed out regarding Jeong, "He posted defamatory comments about competitors, damaging their reputation, and manipulated portal related search terms using macros for self-promotion," adding, "This went beyond normal advertising or promotion and caused serious side effects." As for CEO Kim, the court acquitted him on the grounds that Jeong independently operated the online business sector where the 'comment part-timers' worked, and Kim was not directly involved in the crime.

However, the appellate court reversed the verdict, stating, "As the CEO, he was aware of and approved the comment operations." The court ruled, "The defendants' actions not only caused confusion among exam takers but also hindered fair competition in the online lecture industry. Considering that these acts were systematically carried out through professional marketing and advertising, strict punishment is necessary."

In the second trial, CEO Kim was sentenced to one year and six months in prison with a two-year probation, and Jeong was sentenced to one year and six months in prison and was taken into custody in court.