Arrest Warrants Dismissed for Former and Current CEOs of Happymoney Inc. in 'TMON-WEMAKEPRICE Incident'

Court: "Room for Dispute Over Establishment of Crime and Charges"

The arrest warrants for the former and current CEOs of Happymoney Inc., the issuer of Happymoney gift certificates whose use was suspended due to payment settlement delays at TMON and WEMAKEPRICE, were dismissed on June 5.

On this day, Lee Jungjae, the chief judge in charge of warrants at the Seoul Central District Court, dismissed the arrest warrant requests for Choi Byungho, former CEO, and Ryu Seungseon, current CEO of Happymoney Inc., who are facing charges including fraud and violations of the Electronic Financial Transactions Act.

Judge Lee explained, "There is room for dispute regarding the defendants' awareness of the alleged crimes and the establishment of the charges, and it is necessary to guarantee the defendants' right to defense." He added, "A significant portion of the physical evidence has already been collected through searches of offices and residences, and much of the testimony from related parties has also been obtained."

He further stated, "Considering the progress of the investigation so far, including the fact that the defendants have never refused to cooperate with the investigative authorities, and that it is difficult to say that any new significant evidence has been found in the process of reapplying for the warrant after its dismissal, the warrants are being denied."

Last year, purchasers of Happymoney gift certificates filed fraud charges against CEO Ryu and others after the use of the certificates was suspended due to settlement delays at TMON and WEMAKEPRICE.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency has continued its investigation, including conducting searches and seizures at the Gangnam headquarters of Happymoney Inc. and the offices of its affiliate, Korea Prepaid Card, in September last year.

The police are also investigating allegations that Happymoney intentionally avoided registering as an electronic financial business operator by submitting falsified documents to the Financial Supervisory Service.