The police have launched an investigation into the "PS Financial Ponzi scheme," which is expected to incur damages of at least 200 billion won.
According to the police on the 21st, the Gangnam Police Station in Seoul has booked more than 10 individuals, including the head of PS Financial, Lee, on charges of fraud and similar receiving activities under the Specific Economic Crimes Aggravated Punishment Act.
Lee and others are accused of selling "ultra-short-term corporate bonds" that promised capital preservation and interest rates of around 10% monthly, receiving 200 billion won in investments and failing to repay it. Considering that there are victims who were unaware of the problems at PS Financial, the scale of damages is expected to increase.
The majority of the victims are reported to be inexperienced individuals in their 20s and 30s with limited financial knowledge. The damage per person varies from several million won to tens of millions of won. Some investors reportedly took out loans, including jeonse (lump-sum deposit for rent) and credit loans, to invest in PS Financial.
Those selling PS Financial's ultra-short-term corporate bonds include not only officials from PS Financial but also insurance planners, small business owners, and general individuals. They may face charges related to similar receiving activities, and the number of suspects is expected to increase.
Victims claim that the bonds they sold never existed. It is alleged that PS Financial, a lending company, received investment funds but did not invest in the bonds, instead using the money elsewhere and engaging in a borrowing scheme.
Currently, hundreds of complaints and reports related to the PS Financial case have been filed with the Gangnam Police Station. The Gangnam Police have assigned a dedicated investigation team to the PS Financial case to accelerate the investigation. They are currently conducting interviews with the complainants and other victims.
Future investigations are expected to focus on securing the custody of Lee, the head of PS Financial. Since the majority of victims deposited their investment funds into Lee's personal account rather than the corporate account of PS Financial, securing his custody is seen as the first step toward recovering the victims' losses. Lee is currently reported to be unreachable and in hiding. A police official noted, "We are investigating the complainants every day" and stated, "It is difficult to comment on the investigation regarding the head's custody as it is ongoing."