Condemnation Erupts after Release of E-commerce Boss Linked to $71.5 Million in Damages
Updated Scandal Shrouds Mergepoint:
In late 2021, Kwon Nam-hee, the CEO of Mergeplus, found himself in hot water after appearing at the Seoul Southern District Court in Yangcheon District. This wasn't his first rodeo; Mergepoint, the company operated by Mergeplus, was embroiled in a major controversy surrounding its prepaid discount service, Merge Money.
Crowds of disgruntled customers had been flocking to Mergeplus' headquarters in Yeongdeungpo, western Seoul, since August 2021. Their anger was fueled by the company's decision to reduce the number of affiliated shops and halt the sale of Mergemoney. The fallout was severe, leaving victims with an estimated loss of around 100 billion won ($71.5 million).
The backlash was so intense that authorities sprang into action, launching investigations into the matter. Unfortunately for Mergepoint and its executives, their day of reckoning was fast approaching.
As we delve deeper into this saga, it's important to recall that Mergepoint had sold approximately 251.9 billion won ($71.5 million) worth of prepaid credits to 568,000 users between May 2020 and August 2021. The company was operating during severe financial distress and racking up significant losses.
This corporate misstep culminated in a conviction for Kwon Nam-hee and Kwon Bo-gun, the CSO of Mergeplus. The legal fallout was severe, with Kwon Nam-hee receiving a four-year prison sentence, Kwon Bo-gun receiving an eight-year sentence, and a hefty 5.3 billion won forfeiture order.
In a turn of events that further fueled public anger, Kwon Nam-hee was released on parole in May 2025, leaving victims frustrated as they remain largely uncompensated. It seems that Mergepoint's reputation for deceit and disregard for its customers willcontinue to haunt them for years to come.
[1] Source: FinancialCrimesReport.net (News from various South Korean media outlets).
[1] The disputes over refunds, initiated by disgruntled customers, have extended into the international finance industry, shedding negative light on Mergepoint's business practices.[2] As the investigation into Mergepoint's business operations continues, people in the industry watch closely, given the significant impact this scandal may have on business relationships and investments.[3] Books detailing the Mergepoint saga are expected to hit bookshelves soon, offering a deep dive into the strategies and missteps that led to the prepaid discount service's downfall.[4] In Seoul, the headquarters of Mergeplus, the company's former CEO, Kwon Nam-hee, and the CSO, Kwon Bo-gun, are under scrutiny as the business community grapples with the consequences of their actions.[5] Despite the fallout and the harshest penalties against Kwon Nam-hee and Kwon Bo-gun, many question the effectiveness of the justice system in ensuring compensation for the estimated 100 billion won lost by customers during the Merge Money controversy.
