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Trade Commission Exposes JU Network

Posted December. 19, 2006 03:01,   


It was confirmed yesterday that in response to the Presidential Chief Civil Secretariat’s request, the Fair Trade Commission (FTC) sent in two reports about the JU Network, which uses a pyramid selling scheme for its business, in writing and by fax, to the secretariat.

This fact was first revealed and the contents of these reports were firstly publicized yesterday.

According to the data, Lee Kei-kyung, a lawmaker of the major opposition Grand National Party who belongs to the National Policy Committee, received from the FTC, the Presidential Chief Civil Secretariat called the FTC two times and asked for information about the current situation of pyramid selling. The FTC official who sent in the report said through the phone that he couldn’t remember to whom he sent it.

In response to a request from Cheong Wa Dae, the FTC presented a four-page report, titled “JU Network Fair Trade Suspension and It Countermeasure,” to the secretariat in December 1, 2005.

In the report, the FTC proposed that since trades occurring during the suspension of fair trade are not eligible for compensation, the government should publicize this fact and prevent customers from being victimized by the illegal trade. The report also stressed prompt actions to supplement the limitation of the current fair trade suspension system.

This past February 1, the Presidential Chief Civil Secretariat also asked the FTC to send in an additional report and the FTC faxed a two-page report titled “Report on Termination of Fair Trade of JU Network,” to Cheong Wa Dae again.

Given the fact that the Cheong Wa Dae asked the FTC to submit the reports about the JU Network even before December 2005, Lee argued that Cheong Wa Dae already recognized the problems of the JU Network.

In fact, the Presidential Chief Civil Secretariat was a working place of Lee Jae-soon, the presidential secretary, whose family members are entangled in the JU Group’s scandal now. Lee worked for the secretariat from 2005 August until last month.

The prosecution confirmed that Lee’s family members have received more than 100 million won from the JU Group as a payment in advance since December 2005 when JU group declared its suspension of business and is now investigating whether any corruption is involved here.