Kim Mo-ssi, the 35-year-old CEO of payment processing company Lumen Payment, was arrested on August 30th for allegedly embezzling 720 billion won from online investment firm Cross Finance. Kim had been avoiding a court summons for a factual investigation related to the alleged embezzlement. The prosecution believes that Kim used a phantom company to secure credit card sales rights, then fraudulently obtained the 720 billion won from Cross Finance. This sum represented pre-paid credit card sales revenue, a common practice where merchants receive upfront payment and later settle with card companies. Kim’s company was responsible for processing these transactions, but it is alleged that they manipulated the process to siphon off the funds. The Financial Services Commission has requested that law enforcement investigate Lumen Payment’s role in the fraud, citing that the company deliberately caused a situation where Cross Finance was unable to receive payment from the credit card sales.
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