Board game ‘not delivered, non-refundable’ after receiving funding investment… Game company CEO ‘Bulsongchi’

Charged with not delivering product for over a year and a half
Police “A funding method that takes several months…
“It’s hard to believe the victims didn’t know.”

A man in his 30s who was sued by investors for not shipping the product after receiving board game funding was cleared of the charges.

On the 11th of last month, the Busan Yeonje Police Station decided not to send Mr. A, the CEO of a gaming company on suspicion of fraud. Mr. A was accused of raising about 7.7 million won in funding for four types of board games through the company's website and crowdfunding site between February 2021 and September 2023, then failing to release the product and failing to refund the investment. Investors were promised payment of goods within one year after funding from Mr. A, but when payment was not made and communication was insufficient, they filed a class action lawsuit.

Mr. A denied the charges. Although payment for the product was delayed, they claimed that they did not raise funds without the intention or ability to make the product in the first place. Mr. A explained, “We started actual production with the funding, but we were unable to produce it due to overseas factories being shut down due to COVID-19. Even though we did produce it later, delivery was delayed due to product quality issues.”

The police determined that Mr. A was not guilty of fraud. A police official explained, “Usually, the production of products through crowdfunding takes several months or more,” and “Considering that the plaintiffs reported damage nearly three years after the start of funding, it is difficult to say that they were not aware of the characteristics of the funding purchase method.” He added, “Even leaving aside liability for civil damages due to delayed delivery, it is difficult to admit that there was an act of deception.”

Attorney Lee Il-kwon of Daeryun Law Firm, who represented Mr. A, said, “In order to establish a charge of fraud, it must be proven that the suspect did not have the intention or ability to manufacture the product at the time of the contract, that is, the intention to deceive.” He added, “Mr. A submitted the license agreement signed with the original manufacturer and the actual order form as evidence to faithfully explain his efforts to produce the product, and through this, it was acknowledged that there was no intentional delay in product delivery and refund.”

Digital Content Team

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Board game ‘not delivered, non-refundable’ after receiving funding investment… Game company representative ‘Bulsongchi’ (link)