Korean-American YouTuber accused of fraud in South Korea over massive unpaid shoe orders

A Korean YouTuber and digital content creator in his 30s, known for his ties to Los Angeles and his book on digital entrepreneurship, is facing allegations of fraud in South Korea over unpaid shoe manufacturing fees.

The controversy has intensified as several Korean American YouTubers in the U.S. have begun discussing the case, drawing increased public scrutiny.

The allegations surfaced on October 26, when a post on an online community accused  Hwan-seok Choi, a YouTuber known as “Migookkkoma,” of failing to pay outstanding balances and defaulting on payments.

A shoe manufacturer identified by the surname Yang claimed that Choi had repeatedly switched factories while avoiding payments, ultimately shutting down his company after securing government subsidies and loans. According to Yang, Choi then transferred the brand to an associate’s name, continuing business operations while evading financial responsibility. Yang alleged that Choi had accumulated unpaid balances across multiple factories using the same method and that the financial damage to the affected businesses was significant.

As evidence, Yang presented a South Korean court ruling ordering Choi to pay 50 million won (approximately $37,000) by September 30, 2024. However, Yang expressed doubt about recovering the funds, stating that since the corporation had already been liquidated, the likelihood of receiving payment was low. He also revealed that three additional lawsuits were pending against Choi but claimed that Choi’s legal team had been prolonging the cases through procedural delays and appeals. Yang stated that while court mediation had been attempted, legal constraints made it difficult to reach a practical resolution.

The allegations suggest a pattern in which Choi repeatedly changed factories, avoided payments, and left manufacturers with mounting losses. Yang asserted that Choi’s actions forced some factories into financial distress, with some ultimately shutting down due to unpaid material and labor costs. He further alleged that Choi had misappropriated more than 2 billion won (approximately $1.5 million) through government grants, bank loans, and credit lines before defaulting on payments. According to Yang, Choi’s intent from the beginning may not have been to operate a sustainable business but rather to extract funds while withholding payments.

The controversy has been further fueled by Choi’s personal lifestyle, which contrasts sharply with the financial disputes surrounding his business practices. Known for his LA background, Choi has built a following of approximately 50,000 subscribers on his YouTube channel, ‘Migookkkoma’ (@mageplate-y4w), where he has showcased luxury cars, high-end shopping, and an image of success as an entrepreneur. He also co-authored a book titled ‘Beyond the Platform: The Ultimate YouTube Creator’, which discusses marketing strategies and revenue generation for digital creators. Despite the legal disputes, Yang claimed that Choi has continued to live an extravagant lifestyle, alleging that Choi owns several luxury vehicles, including a Porsche, Ferrari, Audi, and G-Wagon. Yang also stated that Choi had recently leased a new car, frequently traveled abroad, and displayed designer clothing and accessories on social media.

As news of the allegations spread, Korean American YouTubers such as ‘Migook Ajae John’ and ‘K-Town Star Kerang-i’ have posted videos analyzing the claims, further intensifying public scrutiny. Some Korean Americans have also come forward on social media, claiming they had been financially harmed by Choi. The ‘K-Town Star Kerang-i’ channel, citing email tips from viewers, reported that Choi was born in 1989 and questioned his educational background, stating that while he had claimed to have graduated from a U.S. university, he actually only held a high school diploma.

Following the growing controversy, Choi has deleted all videos from his channel and appears to have suspended his activities. However, his shoe brand remains available for purchase on the South Korean online retailer Musinsa. Yang expressed concerns that Choi may still be conducting business under a different name, alleging that Choi transferred the brand’s ownership to a relative or associate in an attempt to avoid legal responsibility while continuing operations under the same model.

BY YOONJAE JUNG [jung.yoonjae@koreadaily.com]