Prosecutors Indict Gang Operating Fake 'Gonggu Site' Embezzling 440 Billion Won

Operating 8 Gift Card Group Buying Sites... 20,000 Victims

A group that embezzled 440 billion KRW from about 20,000 victims while operating a group purchase site has been brought to trial.

Minister of Justice Cho Kuk's fifth cousin, a key figure in the 'private equity fund suspicion,' has had an arrest warrant requested by the prosecution, and there are expectations that Professor Jung Kyung-shim, the minister's wife, will soon be summoned. The photo was taken on the 16th at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The Criminal Division 4 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Shin Dae-kyung) announced on the 31st that 10 people, including Mr. A, were indicted without detention on charges including fraud.

According to the prosecution, from December 2018 to January 2021, they operated eight group purchase sites, including department store gift certificates, without the intention or ability to actually conduct group purchase business, and are accused of receiving a total of 440 billion KRW from about 20,000 victims.

The defendants brought to trial this time are subordinate operators of the main culprit Mr. A (36, female), whose prison sentence has already been confirmed. They conspired with Mr. A to operate individual group purchase sites, obtaining part of the victims' money received under the name of group purchase as commission and remitting the rest to Mr. A, committing the crime using a so-called 'Ponzi scheme' method.

Mr. A was arrested and indicted in July 2021 on charges including fraud and was sentenced to 9 years and 6 months in prison in the appellate trial confirmed last February.