The CEO of Allets, an online shopping mall that abruptly announced the suspension of operations without settling hundreds of billions of won in sales payments to partner vendors, has been referred to the prosecution.
On May 21, the Seongdong Police Station in Seoul announced that Park Sunghye, CEO of Interstella, the operator of Allets, has been sent to the prosecution without detention on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
Previously, CEO Park was accused of embezzling sales payments from partner vendors while concealing the possibility of being unable to make payments due to Allets' deteriorating financial situation, despite being aware of this risk. The unsettled amount is estimated to be approximately 26.2 billion won.
The police determined that CEO Park continued to broker product sales and sign new vendor contracts despite knowing that the company's financial condition was unstable.
In August of last year, Allets posted a notice on its website stating, "Due to unavoidable business circumstances, we inform you that our service will be terminated as of August 31," and subsequently ended its service.
The police launched the investigation after partner vendors and consumers who suffered losses due to Allets' unsettled payments and delayed refunds filed complaints.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
