The police have launched a compulsory investigation into Balan, an online luxury goods platform embroiled in controversy over delayed settlements.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on July 4 that it had been conducting a search and seizure for the second consecutive day at Balan's headquarters in Gangnam-gu, as well as at the residence of CEO Choi Hyungrok and other locations.
It was reported that through this search and seizure, the police secured various documents, internal records, and electronic data related to the company's operations.
In March, Balan filed for corporate rehabilitation proceedings (court receivership) with the Seoul Bankruptcy Court after failing to pay sales proceeds to some partner vendors.
Vendors who suffered losses filed a police complaint against CEO Choi, Chief Strategy Officer Choi Suyeon, and Chief Operating Officer Choi Hyungjun, accusing them of fraud, embezzlement, and breach of trust.
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