'Cambodia-Based 4.36 Billion Won Stock Scam' Leader Sentenced to 6 Years in Prison

Supreme Court Dismisses Appeal

Convictions Upheld for Criminal Organization Membership and Fraud

A member of a stock trading scam group, which was based in Cambodia and used fake stock trading websites to steal billions of won, has received a confirmed prison sentence.

Supreme Court, Seocho-gu, Seoul. Photo by Yonhap News

According to the legal community on June 19, the Supreme Court's First Division (Presiding Justice Shin Sookhee) upheld the original verdict sentencing Mr. Kim (32), who was indicted on charges including participation in a criminal organization, fraud, and violations of the Capital Markets Act, to six years in prison.

In December 2023, Kim joined a stock trading scam group in Phnom Penh, Cambodia, colluding with Chinese members to target Koreans. He was accused of acting as a recruiter and manager for Korean victims.

The group recruited investors through Telegram chat rooms and operated a fraudulent investment website (HTS) that appeared to be linked in real time to the Nasdaq and KOSDAQ indices, luring victims into virtual stock investments.

An investigation revealed that, from June 2024 over a period of about one month, the group defrauded 28 victims for a total of approximately 4.36 billion won.

The central issue in the trial was whether Kim directly joined and participated in the criminal organization. During the proceedings, Kim’s side claimed that he only introduced an acquaintance and did not personally join or participate in the group, nor did he recruit sales team members, arguing that these were actions taken by his acquaintance.

However, both the first and second trial courts rejected these arguments and sentenced Kim to six years in prison. The first trial court emphasized, "This crime was an organized and planned offense targeting an unspecified number of people, causing significant social harm, and therefore severe punishment is inevitable." The second trial court also found that Kim had conspired with other members to commit fraud and operate an unauthorized financial investment product market, upholding the original judgment.

The Supreme Court also dismissed Kim's appeal, stating, "There was no violation of logical or empirical rules, nor any misunderstanding of the legal principles regarding joint offenders or participation in a criminal organization, in the lower court’s decision."

This content was produced with the assistance of AI translation services.