Executives Indicted for Defrauding 20,000 People of 600 Billion Won With "20% Return Guaranteed Through Live Commerce" Scheme

Promised 20% Returns Through Live Commerce Sales

Prosecutor image (photo to aid article understanding). Photo by Asia Economy Database

The leaders of an illegal multi-level marketing organization, who deceived approximately 20,000 people by promising guaranteed investment returns through live commerce cosmetics sales and embezzled a total of 600 billion won, have been brought to trial.

On October 9, the Criminal Division 4 of the Seoul Central District Prosecutors’ Office (headed by Chief Prosecutor Lee Junghwa) announced that from August to October 2, a total of 15 executives of the multi-level marketing group “JD The Global” were indicted and taken into custody on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), the Act on Regulation of Conducting Fund-Raising Business without Permission, the Door-to-Door Sales Act, and fraud.

They are accused of deceiving approximately 22,000 people by claiming they would guarantee a 20% return on investments through the sale of cosmetics via live commerce (real-time online sales broadcasts), and embezzling a total of 600 billion won.

The prosecution determined that this was a major illegal multi-level marketing case that, over a short period of just one year and five months, caused large-scale nationwide victimization, undermined the household finances of ordinary citizens, and disrupted the financial order. The prosecution stated that, through close investigative cooperation with the police, they thoroughly tracked the criminal proceeds illegally obtained by the suspects and are currently taking necessary measures to return assets to the victims.

The Seoul Central District Prosecutors’ Office, in cooperation with the “Multi-Victim Crime Investigation Task Force” dispatched by the Supreme Prosecutors’ Office, plans to focus on investigating similar illegal fund-raising and multi-level marketing cases with large numbers of victims and significant financial losses that have drawn public attention, while also making every effort to recover criminal assets and restore damages for victims.