The CEO of the renowned art gallery Seojeong Art Center has been arrested on suspicion of operating a multi-level financial fraud scheme.
On December 24, the Seoul Metropolitan Police Agency’s Criminal Investigation Unit announced that they had arrested the gallery’s CEO, identified as Lee, on December 22 on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Act on Regulation of Conducting Fund-Raising Business without Permission.
CEO Lee is accused of attracting investors since the mid-2010s by promising, “If you purchase an artwork and entrust it to the center for one year, we will pay you a fixed monthly income through exhibitions, advertising, and sponsorships.” However, starting in May of this year, she allegedly stopped paying the promised returns and has also been avoiding repayment of the principal investments.
To date, there are reportedly around 800 victims, with total damages amounting to approximately 110 billion won.
In June, the police conducted a search and seizure of the Seojeong Art Center’s headquarters in Nonhyeon-dong, Gangnam-gu, as well as CEO Lee’s residence.
With CEO Lee now in custody, the police plan to continue their investigation to determine the exact details of the case.
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