'Securing New Meat Processing Technology' 100 Billion Investment Fraud Suspicion... Police Investigate Company

[Asia Economy Reporter Lee Jung-yoon] A company that raised about 100 billion won by promising high returns on investments in meat processing and export businesses has been sued by investors, prompting the police to launch an investigation.

According to the police on the 2nd, the Songpa Police Station in Seoul is investigating five executives, including Kim Mo (65), the CEO of meat processing company A, on charges of violating the Act on the Regulation of Conducting Fund-Raising Business Without Permission and other related offenses.

They are suspected of embezzling about 100 billion won from approximately 1,000 victims through a multi-level marketing scheme from early 2018 to June 2019. Company A attracted investors by claiming to have secured a technology that enhances both taste and nutrition by aging meat near 0 degrees Celsius through ice-temperature maturation.

Company A reportedly recruited investors through middle managers holding titles such as Center Chief and Headquarters Chief. Investors signed promissory notes agreeing to receive dividends of 3 to 10% of their investment every 40 days, and although dividends were initially paid, payments were later stopped, according to claims.

It is known that multiple complaints against Kim and others were filed at several police stations, and following a request for investigation by the Financial Supervisory Service in August last year, the Songpa Police Station is conducting a consolidated investigation. Kim is currently staying overseas, and as a result, the Seoul Central District Prosecutors' Office suspended prosecution of a separate complaint case last year. Authorities have invalidated Kim’s passport.

A police official stated, "The amount of damage recognized may vary depending on the investigation results," adding, "We are investigating the complainants and analyzing the collected materials, and the suspects will be summoned for questioning soon."