|Three Internet auction companies have been indicted by the South Korean courts charged with practising illegal online gambling, it emerged today. According to the prosecutors the firms Korea Tender, Lowwin and Seven Today make participants in their auctions pay ‘low level bidding fees’ with the chance to ‘win prizes’ of a much higher value. This, they say, encourages ‘speculative behaviour’ which is tantamount to gambling. Prosecutors claim that since, February, Korea Tender has collected around 11.6 billion Won in bidding fees and auctioned off 6.6 billion Won worth of goods, gaining 5 billion Won in net profits. |
While the authorities say they will launch a probe into the dealings of similar auction companies, it is unclear whether the companies are, in fact, breaking Korean law. The companies claim, in their defence, that all participants in their auctions are aware of the auction rules. The trial continues.