"Pay Twice the Investment" and "Transfer the Business Rights," He Promised—Then Pocketed 250 Million Won [Scammers]

[Financial News] In early February 2020, at an office in Yeongdeungpo District, Seoul, Park, the CEO of a sales agency and real estate consulting company, encouraged Jung to invest in an officetel development project.
Park said, "I am carrying out an officetel development project in Yeongdeungpo District," and told Jung that he would pay twice the investment amount within a month after the Project Financing (PF) loan was disbursed.
Believing him, Jung transferred 50 million won to Park’s account on February 14. From that day through July 18 of the same year, Jung transferred investment funds seven times, totaling 150 million won.
At the time, however, Park had no steady income or significant assets. He was heavily in debt and intended only to use the investment funds to repay existing debts. Lacking capital of his own, he could not pay deposits to the landowners and had no reliable plan to raise the money. He had not even secured valid consent to use the land.
According to legal sources on the 6th, the Seoul Southern District Court’s Criminal Division 13, presided over by Judge Nam Min-young, sentenced Park, who was indicted on fraud charges for taking money from Jung and another victim, Lee, to prison terms of one year and eight months, respectively. Both sentences were suspended for two years.
The court noted, "The defendant committed the offenses in this case again despite having been punished several times for fraud and other crimes." It explained the sentencing decision, stating, "We took into account that the defendant admitted to the offense against Jung and showed remorse; that records confirmed the transfer of substantial sums to Jung and Jung’s husband; and that there appeared to be some mitigating circumstances in the circumstances surrounding the offense and those following it."
After receiving 150 million won in investment funds, Park demanded additional money from Jung while offering the sales agency rights. At his office in early August 2020, Park told Jung, "I have obtained consent from 80% of the landowners for the officetel development project." He then promised that if Jung lent him only 50 million won, he would complete the project, delegate the sales agency rights, and repay the money within a month after the PF loan was completed.
Jung eventually sent an additional 50 million won on August 12 to the account of the company headed by Park. The total amount Jung had given Park as investment funds and a loan had risen to 200 million won.
Park, however, had neither the intention nor the ability to delegate the sales agency rights or repay the loan as promised.
Around mid-August 2022, Park proposed a knowledge industry center development project at Lee’s company office in Yeongdeungpo District.
This time, Park explained that the land-purchase work required for the project was nearly complete. He said that all landowners within the project site would sign sales contracts transferring ownership to Lee’s company within two months, and that he would also transfer the development rights for the knowledge industry center.
He then requested 50 million won to cover expenses urgently needed for the land-purchase work. Park promised to return the money if he failed to complete the work by the deadline, and Lee transferred 50 million won to Park’s company account that day.
However, the letters of intent to sell that Park had obtained from the landowners had already become invalid because the deposits had not been paid. It was difficult to complete the land-purchase work within the promised two months, and Park had debts of approximately 53 million won at the time.
Lee began demanding repayment around November 2022, about three months after handing over the money. Park postponed repayment, saying, "The land-purchase work is nearly complete, and I’ll pay you back soon." When Lee sent another text message urging repayment in December of the same year, Park replied that he would deposit the money that day. However, the court found that Lee had not received the money back by the time of the ruling.
The actual use of the money was also confirmed. Park transferred 45 million won of the 50 million won he received from Lee to a third-party account. In court, he stated that the money was used to repay an existing debt. The person who received the money on his behalf also told investigators that most of it was passed on to the creditor and the creditor’s family and acquaintances.
Considering these circumstances together, the court ruled, "It can be determined that the defendant deceived the victim and defrauded the victim of money as described in the criminal facts."
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