Hyunyoung, Victim of '60 Billion Won Mom Cafe Scam'? ... Did Not Receive 300 Million Won

Hyunyoung and Mr. A sued for loan fraud
Some say "hard to see them only as victims"

Broadcaster Hyunyoung's name is being mentioned in connection with a 60 billion won-scale Mom Cafe fraud case.

Broadcaster Hyunyoung Photo by Noah Entertainment

The 5th Criminal Division of Incheon District Prosecutors' Office (Chief Prosecutor Park Seongmin) indicted Mr. A on the 27th of last month on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Act on the Regulation of Similar Credit Transactions.

According to entertainment media Dispatch on the 11th, Hyunyoung sent a total of 500 million won to Mom Cafe operator Mr. A from April 29 last year. She received monthly interest payments of 35 million won (about 7%) for five months, but did not receive the remaining amount of 325 million won.

As a result, Hyunyoung filed a complaint against Mr. A for loan fraud, and the police prosecuted Mr. A for fraud under the Specific Economic Crimes Act.

Mr. A is accused of running the cafe from November 2019 to September last year and embezzling 14.2 billion won from 61 people. In particular, he is also charged with illegal fundraising by collecting about 46.4 billion won from 282 members under the pretense of promising approximately 30% profit by investing in department store gift certificates. (Illegal fundraising refers to the act of receiving money under the name of deposits, savings, installment savings, or deposits, promising to pay the principal in full or an amount exceeding it.)

There are also suspicions that Mr. A exploited Hyunyoung's fame. He posted photos showing his friendship with Hyunyoung and gained members' trust by showing text messages of deposit details sent by her. He also sold and promoted Hyunyoung's cosmetics in his Mom Cafe.

Meanwhile, some argue that it is difficult to see Hyunyoung as a purely innocent victim. According to Article 2 of the Interest Rate Restriction Act, the maximum interest rate should not exceed 20% per year. Violations can result in imprisonment for up to one year or a fine of up to 10 million won. The monthly interest rate of 7% that Hyunyoung received is more than four times the legal maximum interest rate, which amounts to 84% annually.

Regarding this, Hyunyoung's agency, Noah Entertainment, has not released any particular statement as of the 11th.