Focus on the results in the prosecution system under Shim Woo-jung’s emphasis on ‘convicting economic crimes’
[Koo Young-bae, CEO of Quteg Group, is entering his residence with prosecution officials on August 1 to assist in a search and seizure by the prosecution. 2024.08.01. / Photo=Newsis]
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“[Financial News] Koo Young-bae, the head of Quteng, who was identified as the ‘culprit’ of the large-scale unsettled situation of Timape (T-mon·We-map), attended the prosecution on the 30th. It has been about two months since the prosecution gathered a dedicated team. As a result, it is highly probable that the Timape case will be concluded by October. Anticipation is high for the outcome under the prosecution system that emphasizes ‘convicting economic crimes.’
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‘According to legal circles on the day, the Seoul Central District Prosecutors’ Office, which is investigating the case, summoned Koo to the Seoul Central District Prosecutors’ Office. Koo arrived at the prosecution at 8:55 a.m. When asked by reporters if he had any words to say about the delayed settlement scandal of Timape, Koo briefly stated, “I will be thoroughly investigated today,” before entering the office building. Koo is facing charges of fraud, embezzlement, and breach of trust.’,
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‘Koo is known as the ultimate decision-maker of T-Mon and We-map. Therefore, it is analyzed that whether Timape practitioners received orders from Koo and engaged in activities such as issuing gift certificates, using company funds arbitrarily, and entering into financial payment contracts will be a crucial suspicion to be revealed by the prosecution.’,
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‘Thus, the prosecution plans to focus on investigating whether Koo used the structure of transferring and integrating subsidiary finance teams to a subsidiary called Quten Technologies to use company funds arbitrarily, whether he was involved in engaging in practices of “round-tripping” business despite knowing that the financial situation was deteriorating, and whether there were direct orders from Koo in the process.’,
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‘The prosecution believes that T-Mon and We-map engaged in fraudulent business practices such as using about 50 billion won of sellers’ settlement fees to acquire the overseas shopping mall ‘Wish’ operated by Quten, and selling gift certificates at a discount even when unable to settle the payment normally, resorting to fraudulent practices.’,
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‘What stands out is the high probability that the Timape incident, following the appointment of Shim, the Chief Prosecutor, will be the first major economic crime case handled by the prosecution.’,
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‘So far, the amount of fraud that the investigation team has identified is 1.4 trillion won, and the amount of embezzlement is known to be 50 billion won, making it a large-scale economic crime case in terms of scale.’,
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‘Furthermore, the aftermath of the large-scale Timape settlement delay crisis has led to related companies filing for bankruptcy protection one after another, but despite the growing extent of damages, legal circles have a predominantly skeptical view of the possibility of recovery.’,
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‘Ultimately, this aligns with Chief Shim’s strong handling of economic crimes and stern punishment of offenders causing public harm as stated in his inauguration address.’,
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‘Once the prosecution concludes the evidence and logical proof, it is expected that the Timape case will be resolved by October at the earliest. However, the possibility cannot be ruled out that the prosecution may summon Koo again for further investigation or call in other individuals during this process.
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