[Saban Report] ‘Suspicion of 300 billion won fraud’ K Samheung Chairman Kim Hyeon-jae… Executives and employees also “don’t know their whereabouts”

A report was reported today (8th) on JTBC's 'Case Manager' that Kim Hyeon-jae, chairman of the real estate investment platform company 'K Samheung', committed investment fraud worth hundreds of billions of won.

Since its establishment in 2021, K-Samheung, where Chairman Kim Hyeonjae serves, has promoted the company through the media and recruited investors.

Their investment method is‘Land compensation investment’no see. The plan is that K Samheung will purchase land in advance to be developed by the government or local government, receive compensation when development is confirmed, and share the proceeds.

Regarding selection of investment destinationPredicting land to be purchased by the government using ‘big data’ analysis technologyYou can do it,Experts were brought in from ‘Google’It is said that it was promoted as such.

Especially in relation to profits, etc.‘Principal guaranteed’class‘Dividend income of more than 2% per month’ (profit of more than 24% per year)promised, etc.

One victim investor claimed, “Dividends and principal were coming in regularly, so most of the proceeds were reinvested,” and “Since last March, the money has suddenly stopped running out, so I reported it to the police.”

 

Who is Kim Hyeonjae, Chairman of K Samheung?...'Convicted of real estate fraud'

In the early 2000s, Chairman Kim Hyeon-jae, who was the chairman of Samheung Group at the time, is known to have embezzled tens of billions of won using 'specialized real estate' methods.

Planned real estate is a fraudulent method of purchasing land in a certain area, dividing it into small pieces, and then selling it back to investors through false and exaggerated advertisements such as 'land with good news for rising land prices'.

In the early 2000s, Chairman Kim Hyun-jae hired telemarketers to recruit investors by making up or exaggerating good real estate news, and later made huge profits by reselling properties he had purchased at low prices.

As a result, Chairman Kim Hyunjae was put on trial on charges of embezzlement of 24.5 billion won and sentenced to three years in prison.

 

Looking into K Samheung...'Capital of 1 million won, operating loss of 75.3 billion won'

K Samheung was founded by Chairman Hyeonjae Kim after leaving prison. Although it was advertised as a real estate investment business, the victims' investors claim that 'there was no substance.'

In fact, according to the Small and Medium Business Status Information System, K-Samheung was established with capital of 1 million won and recorded an operating loss of about 75.3 billion won last year. It is approximately three times (KRW 24.8 billion) compared to the previous year.

The damaged investors claimed, “It is highly likely that the investment money was not used for land purchase costs, but rather was being diverted elsewhere.”

He said, "We haven't even received a proper explanation of how the proceeds will be distributed or how the money will be raised."

According to affected investors, the currently known amount of damage is approximately 130 billion won. In particular, one victim investor claimed to the ‘Case Manager’, “There are at least 1,000 victims, and the damage is expected to exceed 300 billion won.”

 

K Samheung's side "I haven't been able to contact Chairman Kim Hyeonjae... I have nothing to say."

The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency is investigating Chairman Kim Hyeon-jae and other company executives on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Act on Regulation of Quasi-Receipts.

Attorney Choi Hyun-deok of Daeryun Law Firm pointed out, regarding K Samheung's suspicion of fraud, "The fact that they said 'guarantee the principal' and 'we will pay differential returns of about 80-250%' alone appears to indicate intentional fraud."

In addition, he suggested, “Although the victims used the IOU, they used it as a corporation without a joint guarantee, so there is a high possibility that they will not be able to get their money back if the corporation is dissolved.”

In relation to this, a high-ranking official of K Samheung told the 'Case Manager', "We understand that Chairman Kim Hyun-jae is seeking a plan to raise the proceeds," but also stated, "We have not been able to contact (Chairman Kim) and we do not know his whereabouts. We have nothing to say."

[View full article] - [Saban Report] ‘Suspicion of 300 billion won fraud’ K Samheung Chairman Kim Hyeon-jae… Even executives and employees “don’t know their whereabouts” (link)