The police have launched an investigation into the management of a real estate company who embezzled thousands of billions of won in investment funds collected by promising a minimum monthly return of 2%.
According to the police on the 6th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency is investigating K-Samhung Chairman Kim Hyun-jae and other executives on charges including violations of the Act on the Aggravated Punishment of Specific Economic Crimes and the Act on the Regulation of Conducting Fund-Raising Business without Permission.
K-Samhung, a real estate investment platform company established in 2021, attracted investors by claiming that they could generate profits by purchasing land planned for development by the government or local governments and then transferring ownership to receive compensation once the development project was confirmed.
They set up seven branches nationwide and attracted investors by promising dividend returns exceeding 2% per month, but investigations revealed that since last month, they have been unable to pay dividends and principal back.
It was also found that the company operated using a multi-level marketing scheme where higher-ranking positions received greater returns.
So far, more than 1,000 victims have been identified, and the amount of damage is known to be in the thousands of billions of won.
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