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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] Koo Young-bae, CEO of Qoo10 Group, who is already facing charges of fraud, embezzlement, and breach of trust under the Act on Aggravated Punishment of Specific Economic Crimes in connection with the large-scale payment default involving Tmon and WeMakePrice, is now under the threat of re-arrest for failing to pay substantial wages and severance pay.
According to the Ministry of Employment and Labor on the 18th, the Seoul Central District Prosecutors' Office Public Investigation Division 3 (headed by Kim Tae-hoon) requested an arrest warrant for Koo based on the investigation by the Gangnam Branch of the Seoul Regional Employment and Labor Office.
Koo is accused of failing to pay approximately 20 billion KRW ($15 million) in wages and severance payments to employees of his subsidiaries and affiliates.
In October, 51 former employees of Qoo10 Tech filed a complaint with the Ministry of Labor against Koo and Kim Hyo-jong, CEO of Qoo10 Technology, accusing them of violating the Labor Standards Act and the Act on the Guarantee of Workers' Retirement Benefits by withholding wages and severance pay.
Koo, along with Tmon CEO Ryu Kwang-jin and WeMakePrice CEO Ryu Hwa-hyun, was indicted without detention on the 11th for charges of breach of trust, embezzlement, and fraud. The charges include allegations of conspiring to misappropriate 1.85 trillion KRW ($1.4 billion) in settlement payments from Tmon and WeMakePrice merchants, and embezzling 50 billion KRW ($37 million) intended for merchant settlements under the pretense of acquiring a U.S. e-commerce company.
Additionally, Koo is accused of inflicting losses totaling 72.7 billion KRW ($54 million) on Tmon, WeMakePrice, and Interpark Commerce by unfairly funneling work to the Qoo10 logistics subsidiary Qxpress in preparation for its Nasdaq IPO.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
