'Merge Point' Class Action Lawsuit, First Trial Possibly Next Month

On September 17 last year, the legal representatives of the Merge Point victims' class action filed a lawsuit for damages at the Seoul Central District Court in Seocho-gu, Seoul, and are responding to reporters' questions. Photo by Kim Daehyun.

[Asia Economy Reporter Kim Daehyun] The first trial of the class-action lawsuit filed by Merge Point victims who suffered losses due to the 'large-scale refund crisis' is expected to be held as early as next month.

According to the law firm 'Justice,' representing the Merge Point victims on the 8th, a total of about 450 victims participated as plaintiffs in the class-action lawsuits filed twice, with a total claim amount of approximately 580 million KRW.

Attorney Noh stated, "The first hearing date for the damages lawsuit has not yet been set. We have recently received responses from the related companies (defendants)," adding, "The first trial is expected to begin from March." He also explained, "So far, there have been no confirmed cases of Merge Point refunding victims during the litigation process."

Merge Point is a payment service launched with the slogan 'Unlimited 20% Discount.' It grew to 1 million users and a monthly transaction volume of 30 to 40 billion KRW, but in August last year, it suddenly announced the suspension of point sales and reduction of usage options, triggering a flood of refund demands from users.

In September last year, 148 victims recruited in the first round filed a civil complaint for damages at the Seoul Central District Court, demanding about 226.8 million KRW in compensation for unused Merge Point balances, purchases of Merge Plus services, and consolation damages for mental suffering.

They held not only Merge Plus and Merge Support Co., Ltd., and the sibling CEOs Kwon Namhee (38) and Kwon Bogun (35) responsible, but also e-commerce companies such as Lotte Shopping, 11st, eBay Korea, Style C Corporation, Wemakeprice, and TMON, who created and sold Merge Point gift certificates.

The claim is that the victims suffered damages due to Merge Plus issuing Merge Point gift certificates without repayment ability and e-commerce companies selling gift certificates and subscription service vouchers without properly verifying the business structure. Subsequently, a second complaint was filed through additional recruitment, with 300 plaintiffs participating and a claim amount of about 350 million KRW.

Meanwhile, related criminal trials have also begun in earnest. The Seoul Southern District Court Criminal Division 11 (Chief Judge Seong Bogi) is conducting the first trial of the sibling CEOs Kwon, who were indicted on charges including fraud and violation of the Electronic Financial Transactions Act, starting at 11 a.m. today. Attorney Noh said, "I heard that some victims participating in the lawsuit will attend the criminal trial," adding, "The civil court handling the damages lawsuit is also expected to refer to the progress of the criminal trial."