"Branch Manager Position Guarantees 4% Profit"... CEO Embezzling 200 Million Won Sentenced to Prison

A CEO in his 50s who deceived people by promising a 4% profit on delivery fees if they became branch managers of the delivery business he operated was sentenced to prison.

According to the legal community on the 26th, Judge Kim Jae-eun of the Seoul Southern District Court Criminal Division 13 sentenced a 55-year-old man, A, who was tried on charges of fraud, to 3 years and 5 months in prison. While running a logistics distribution company, A established another company on April 5 last year with the intent to embezzle investment funds as his business faced difficulties.

In July last year, A proposed a business to victims in the Yeongdeungpo-gu area of Seoul, saying, “We are planning to run a parcel delivery logistics business at Company B. We have already signed agreements with major e-commerce companies and large courier companies, and Company C has logistics warehouses nationwide,” and “By paying 1.05 million won to become a branch manager, recruiting delivery workers, and delivering parcels that have been trunk-delivered to hubs to each customer, branch managers will earn a 4% margin on the delivery fee per parcel.” Using this method, A embezzled a total of 202.65 million won from 193 victims between August 9 last year and January 8 this year.

The court explained, “The defendant has a prior record of similar offenses and committed fraud again during the probation period. The defendant led the crime in this case, and the culpability is not light. Except for about 50 million won refunded from the total damage amount, no restitution has been made.”