[Exclusive] Furniture Firms Disappear After Collecting Down Payments, Leaving Customers Unanswered

Total Confirmed Damages Exceed 130 Million Won
Operations Continued Under Borrowed Company Names Even During Investigation

It has come to light that certain furniture companies have participated in furniture expos across the country, only to collect down payments and then disappear without fulfilling their obligations. These businesses, which have been effectively run by the same owners, continued their operations by borrowing the names of other entities and participating in expos even after investigations were launched. As a result, the number of victims who did not receive their furniture or refunds has continued to rise.

According to an investigation by The Asia Business Daily on July 16, the Criminal Division 3 of the Seoul Northern District Prosecutors’ Office, led by Chief Prosecutor Park Inwoo, is investigating a representative of a furniture company, referred to as Mr. A, on charges of fraud. A prosecution official stated, “We are currently investigating the specific circumstances of the crime and any additional offenses.” Previously, the Yongin Dongbu Police Station in Gyeonggi Province referred Mr. A to the prosecutors without detention this past May.

ChatGPT Generated Image

According to law enforcement officials and multiple victims, Mr. A is suspected of working with Mr. B, known to be his business partner, to operate at several furniture expos starting last year, receiving only down payments and then disappearing without delivering any products.

Currently, police, including Seoul Guro Police Station, Seoul Dongdaemun Police Station, Busan Bukbu Police Station, and Gwangju Gwangsan Police Station, are conducting investigations as complaints have been filed against Mr. A and Mr. B from various regions throughout the country. So far, 43 victims have been identified, with the total combined losses estimated to be at least 130 million won. Individual losses range from a few hundred thousand to several million won. From last year to this year, Mr. A and his associates have been confirmed to have participated in at least 12 furniture expos under a variety of company names, such as Si○○○, Al○○○, and Al○○○○.

All three companies in question are based in Yongin-si, Gyeonggi Province. One of them was originally registered under Mr. B's name, but after filing for closure, Mr. A registered as its new representative. The remaining two companies are officially headed by Mr. B, with identical email addresses and registration locations. One company led by Mr. B was previously promoted as a brand launched by a company with Mr. A as its representative.

Additionally, the Korea Consumer Agency has received a steady stream of related reports since last year, confirming the damages caused by these companies. An official from the agency stated, “Many cases have been reported under the names of these businesses,” adding, “We have identified both Mr. A and Mr. B by name and recognize all the related companies as being the same entity.”

However, the Korea Consumer Agency's actions lack binding force. Their role is limited to recommending settlements and notifying relevant local governments, such as Yongin City, of any confirmed violations. Even though a significant number of victims have come forward across the country, the police response has been delayed because each individual incident constitutes a small-scale fraud case.

In particular, Mr. A and his associates continued their operations at expos, including one in Gangnam-gu, Seoul earlier this month, even after some cases were sent to the prosecution. Due to the controversy over their previous conduct, it became difficult for them to participate under their original brand names, so they resorted to using the names of other companies. An official from a company that shared a booth at the expo explained, “We only agreed to split the booth rental costs and share the space; we have no other connection to them. In fact, we suffered significant damage as a result of this incident and have filed a complaint with the police.”

As the number of victims grows, some expo organizers have announced that they will compensate for the losses out of their own pockets and subsequently seek reimbursement from Mr. A’s side. The organizers of an expo that Mr. A and co. attended under a borrowed company name earlier this month issued a statement the previous day, offering to reimburse 50% of the undelivered amounts in cash to affected customers. They added, “We deeply regret that we failed to prevent such an unfortunate incident in advance and take responsibility for the harm caused to our customers. The companies in question are now unreachable, making recovery for victims extremely difficult.”

Victims scattered across the country have created open chat rooms to share their experiences, confirm the details of the damages, and explore possible courses of action. As their cases are classified as small-scale fraud and face delayed investigation, some are considering combining their losses and filing a group complaint together.

Ms. Joo (50), who paid a down payment of about 3 million won in March this year but never received her furniture, said, “As a consumer, we trust expos when making purchases. It’s simply unacceptable for companies like this to enter such venues and cause these losses.” Mr. Kim (30), who lost 2.08 million won in May, shared, “I visited to purchase all my newlywed furniture, from the bed to the sofa and dining table, and I trusted the fact that it was an expo. That trust was arrogant.”

The Asia Business Daily made multiple attempts to contact the companies in question, as well as Mr. A and Mr. B, by phone and text message, but was unsuccessful. One company represented by Mr. B sent some victims a message on this day, stating, “We apologize for the concerns caused by delays in delivery or refunds. If you send your account number, we will process your refund by Sunday (the 19th) for customers who have been waiting for their products for several months.”

This content was produced with the assistance of AI translation services.