The police have imposed a travel ban on Choi Hyung-rok, the CEO of Balan, a luxury online platform currently undergoing rehabilitation proceedings.
The Suwon Southern Police Station in Gyeonggi announced on the 7th that they received a complaint at the end of last month requesting punishment of Balan CEO Choi Hyung-rok on charges of fraud and embezzlement, and after investigating the complainant, they imposed a travel ban on CEO Choi. It is reported that the complainant filed the complaint after supplying products to Balan but was unable to receive payment due to the rehabilitation process.
Currently, police stations nationwide are reportedly receiving a series of complaints from vendors requesting punishment of CEO Choi on similar charges. Considering CEO Choi’s residence and business locations, the police plan to designate a dedicated investigation office soon and proceed with a full-scale investigation.
Earlier, the Seoul Rehabilitation Court decided to commence Balan’s rehabilitation proceedings on the 4th. The deadline for submitting the rehabilitation plan is June 27. The court decided not to appoint a separate administrator when initiating the rehabilitation proceedings. Accordingly, the current CEO is regarded as the administrator, and the existing executives will continue to manage the company during the rehabilitation process. Once Balan submits the rehabilitation plan, the court will review it and decide whether to approve the rehabilitation. If the court determines that rehabilitation is not feasible, the company will be declared bankrupt.
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