Six Members of Scam Ring Arrested for Defrauding 1 Billion Won by Falsely Claiming Stocks Would Be Listed

Gwangju Police Arrest Three, Including Call Center Operator
Lured Investors via Social Media and Text Messages Before Disappearing

A group running an unlisted stock scam, which deceived investors by claiming the stocks were about to be listed and then embezzled a large sum of money, has been caught by the police.

The Gwangju Police Agency announced on the 18th that it had apprehended six individuals, including a man in his 30s identified as A, on charges of fraud and operating an unauthorized financial investment business under the Capital Markets Act. They are accused of deceiving investors by falsely claiming that unlisted stocks would soon be listed, and defrauding a total of approximately 1 billion won from 26 victims. Among those arrested, three individuals, including the call center operator, have been taken into custody.

Gwangju Police Agency.

According to the police, from July 2024 to February of this year, the suspects approached an unspecified number of people through social media and text messages. In the early stages of their scheme, they gained trust by actually providing unlisted stocks that were scheduled for listing. Later, when victims invested larger amounts, the suspects cut off contact and changed their mobile phones and office locations to evade tracking. The police began their investigation in February, after receiving criminal complaints, and sequentially identified and apprehended the suspects. They also seized 254 million won in criminal proceeds.

The police plan to expand their investigation into additional crimes, accomplices, and money laundering operations through digital forensics of the seized mobile phones. A police official emphasized, "Any financial investment activity conducted without authorization is illegal in itself, and if you are asked to transfer funds to a personal bank account, you should assume it is 100% a scam."