A total of 69, including Chairman Lee Sang-eun, indicted
The chairman and executives of Hustem Korea, who are accused of operating an illegal multi-level marketing scheme and defrauding 200,000 people out of approximately 3.3 trillion won, have been indicted and will stand trial.
On November 30, the Criminal Division 4 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Junghwa) announced that Lee Sang-eun, chairman of Hustem Korea, and 68 others have been indicted on charges including fraud, violations of the Act on Regulation of Conducting Fund-Raising Business without Permission, and violations of the Door-to-Door Sales Act.
From May 2020 to December 2023, Chairman Lee and others allegedly attracted approximately 200,000 victims by promoting that they would "increase funds and pay dividends in virtual assets, guaranteeing both the principal and high returns" through agricultural, livestock, fisheries, and online shopping mall businesses, and illegally raised about 3.3 trillion won.
Two suspects who played a central role in recruiting members were also indicted and detained on charges of acquiring criminal proceeds worth between 700 million and 1.8 billion won while serving as "center managers" at another multi-level marketing company, even while under investigation by prosecutors.
The prosecution stated, "This is a major illegal multi-level marketing case that created a large number of victims nationwide and devastated the household finances of ordinary people," adding, "We will continue to focus on investigating large-scale crimes affecting the public, preventing repeat offenses, and making every effort to recover criminal proceeds and provide practical restitution for victims."
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