A recent scandal involving a car leasing company has revealed a shocking scheme that defrauded hundreds of customers out of their deposits.
On October 31, the Seoul Seocho Police forwarded 40 suspects, including the head of a used car sales company and comedian Lee Dong-yoon, to the Seoul Central District Prosecutor's Office for charges of fraud. They are accused of failing to return a total of 24.9 billion won (approximately $20 million) in deposits to 797 victims before going on the run. The company promoted a deal that promised to support customers with half of their monthly payments if they provided a deposit of 30-40% of the vehicle cost.
Investigations revealed that the suspects employed a Ponzi scheme, where commissions were paid out based on ranks, and new deposits were used to repay earlier clients. This model made it difficult to seize the fraudulent funds before the prosecution occurred. The company, established in 2010, had expanded to offer auto leasing alongside used car sales since 2017.
Comedian Lee Dong-yoon reportedly became a used car dealer after the cancellation of his show "Gag Concert" to support his family. When the scheme was uncovered in December, he appeared in broadcasts and on YouTube to apologize, stating he never thought the business model was fraudulent.