[Inside Chodong]There Is No Easy Way to Make Money

CEO of Leading Chat Room Company Indicted for Embezzling 2.2 Billion KRW by Impersonating Economic Newspaper
Crimes Related to Leading Chat Rooms Persist Despite Stronger Punishments
Promises of Risk-Free, High Returns Should Raise Red Flags

"If there were an easy way to make money, why would anyone share it with complete strangers? Only you and your family should know about it. You should not be deceived by claims of guaranteed profits without any risk."

An expert with over 30 years of experience in the financial investment industry warned to be cautious of leading chat rooms. Although judicial authorities are striving to eradicate illegal activities in leading chat rooms, incidents related to these rooms continue unabated. Strengthening punishments has its limits in preventing damage. Ultimately, individuals must stay vigilant themselves, or they may become prey to illegal leading chat room groups. Regardless of the reason given, if someone promises returns exceeding bank loan interest rates, it is best to be cautious.

Recently, the Seoul Southern District Prosecutors' Office arrested and indicted the CEO and employees of a leading chat room company who impersonated an economic newspaper and collected 2.2 billion KRW by promising IPO shares. From October last year to March this year, they lured investors through KakaoTalk open chat rooms. Considering that funds were flowing into the IPO market and competition for IPO shares was fierce at that time, they used the method of selling IPO shares. To gain investors' trust, the leading chat room group also created business cards impersonating economic newspaper team leaders and senior researchers. They even used contracts and delivery notes under the media's name.

Believing "Surely employees of a famous economic newspaper wouldn't commit fraud," 34 people fell victim. Although judicial authorities apprehended the leading chat room group, the 2.2 billion KRW investment had already disappeared.

The criminal behaviors of illegal leading chat rooms are diverse. A group impersonating a global private equity firm promising high returns has also come under investigation. Since last month, the Sejong Police Agency has designated the private equity impersonation leading chat room fraud as a focused investigation case and is conducting a consolidated investigation. They operated a private social networking service (SNS) impersonating employees of a famous private equity firm to lure investors. They embezzled several hundred million KRW under the pretext of investment funds. They also induced participation in projects by guaranteeing 370% investment returns. They deceived investors by creating fake websites to make it appear as if profits were generated.

Cases of impersonating major domestic securities firms and famous individuals to recruit leading chat room members have become outdated tactics. When victims interact with groups preparing various scripts for fraud, damage is inevitable. After sending tens of millions of spam messages to an unspecified large number of people, one or two express interest. Even skeptics are deceived by perfect scripts and entrust their funds.

In fact, the National Police Agency began compiling data on leading chat room fraud damages from September last year, and within 11 months, reported damages exceeded 540 billion KRW.

Although judicial authorities are filtering out illegal leading chat rooms, these rooms are spreading rapidly through Telegram, which is difficult to trace. Strengthening punishments alone cannot eradicate the damage. Each individual must avoid those who guarantee high returns. Do not be deceived by phrases like "This is the only opportunity" or "If you don't deposit today, you will lose a good investment chance."

Regulatory authorities must continuously inform the public about new types of scams that grow like poisonous mushrooms to prevent new victims. The financial investment industry must also actively work to prevent the spread of damage. Efforts are needed to bring fraud damage amounts into the formal system. Notices such as "Beware of securities firm impersonation leading chat rooms" on securities firms' websites or home trading systems (HTS) are ineffective. Using sales networks spread across the country, continuous education on damage prevention must be conducted.