[News Terms] 'Leading Room' Scams Targeting Coin Ants Following Donghak Ants

‘Investment leading rooms’ that induce investments by impersonating celebrities are rampant, requiring special caution.

Investment leading rooms refer to illegal quasi-investment advisory activities that lure investors by offering recommended stocks or investment advice on stocks or virtual assets through social media (SNS) platforms such as KakaoTalk open chat rooms, Facebook, and YouTube, and collect fees. They are called leading rooms because they pick stocks to invest in and lead the timing of buying and selling.

They promote that joining as a paid member by featuring celebrities, economists, YouTubers, and other famous figures can yield high returns, but most of these places have no connection to the celebrities. According to the National Police Agency, the number of illegal activities related to investment leading rooms, including celebrity impersonation scams, exceeded 1,000 cases from September to December last year, with damages exceeding 120 billion KRW.

The celebrities themselves have warned that the leading rooms using their names are ‘fake,’ but recently, the trend is expanding beyond Instagram and Facebook to YouTube advertisements. In response, broadcaster Song Eun-yi, Hwang Hyun-hee, instructor Kim Mi-kyung, Professor Kim Young-ik of Sogang University, YouTuber Doti, John Lee, former CEO of Meritz Asset Management, and Joo Jin-hyung, former CEO of Hanwha Investment & Securities, have formed the ‘Association for Solving Celebrity Impersonation Online Phishing Crimes (Yusamo)’ to jointly respond. Yusamo plans to hold a press conference on the 22nd afternoon to raise awareness of the seriousness of online phishing crimes impersonating celebrities and to urge platforms and the government to take action through a statement.

Some leading rooms claim to provide one-on-one management for high-paying members, but such individual investment advisory services can only be conducted by investment advisory firms officially registered with the Financial Services Commission. Even companies reported as quasi-investment advisory services are illegal if they provide individual consultations.

Occasionally, there are free leading rooms offering investment information for beginner investors. Among these free leading rooms, some operate by having the leader purchase recommended stocks in advance and then encouraging members to buy, spreading false information, so caution is necessary. Following the leader’s trading instructions carelessly may result in becoming part of a ‘manipulated stock’ group.