[Alpha Biz= Paul Lee] South Korean e-commerce platform 11st (11번가) has expressed confusion and concern over reports that DB Securities is considering legal action against the company in connection with a recently uncovered internal fraud case involving large-scale misuse of gift cards.
According to industry sources on June 17, some media outlets reported that DB Securities is reviewing the possibility of filing a lawsuit against 11st, following revelations that one of its employees exploited the platform to conduct KRW 35.5 billion (approx. USD 25 million) worth of illegal gift card transactions between August 2016 and May 2024.
In a statement, 11st responded, “We are baffled by talk of litigation, especially given that our business relationship with DB Securities has operated normally for over a decade.”
The fraud case, first reported by News1, involved a DB Securities employee who repeatedly purchased gift cards through 11st and then redirected the digital vouchers (gifticons) to mobile numbers registered under himself and his son using the platform's admin interface.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
