Former Midas CEO Sentenced to 16 Years in First Trial for 360 Billion Won Solar Power Fraud

Violation of the Act on the Aggravated Punishment of Specific Economic Crimes
Court: "Deceived 5,000 Victims by Misleading"

Seo Seok-hyun, the former CEO who operated the fraudulent investment company Midas Partners and committed a scam worth 360 billion won, was sentenced to a heavy prison term in the first trial.

On the 8th, the Criminal Division 27 of the Seoul Central District Court (Presiding Judge Woo In-seong) sentenced Seo, who was tried for violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), and for engaging in fraudulent investment activities, to 16 years in prison. The court also ordered a confiscation of 98.4 billion won. Five other related persons, including Kim, the Executive Vice President, and Hwang, the finance officer, were sentenced to prison terms ranging from 1 to 7 years, and all six were detained in court.

The court criticized, “They established a nationwide organizational system and deceived victims with high interest rates,” adding, “Using a Ponzi scheme, they defrauded about 5,000 people and embezzled 350 billion won, causing enormous financial damage.” It also pointed out, “Despite purchasing expensive foreign cars and luxury goods and complaining of health deterioration, they showed no remorse, even participating in racing competitions.”

Seo and his group promoted Company A, which had no sales, as a promising company by claiming it was supplying solar power equipment to Iraq. Midas Partners attracted investors by saying that it was lending money to Company A and receiving interest, encouraging participation in the investment. They established regional corporations nationwide, set up positions such as headquarters chief and branch manager, and enticed victims by promising a 2% monthly return. In reality, Midas Partners did not generate any profits, and the investment funds were used personally by Seo and others.

The prosecution reported that Seo and his associates extorted 360 billion won from 5,316 victims between September 2018 and June 2021 and indicted them in December 2021. The court recognized 5,288 of them as victims and acknowledged 352.8 billion won as the amount embezzled, reasoning that it was difficult to consider accomplices or family members as victims who were defrauded into investing.