Seojeong Art Center CEO Sentenced to 18 Years in First Trial for 100 Billion Won Art-Tech Fraud

Court Orders Forfeiture of 14.1 Billion Won
Ponzi Scheme Defrauded 981 Investors with Promises of Principal Guarantee

The CEO of Seojeong Art Center, who deceived over 900 investors by promising high returns on art investments and misappropriated more than 100 billion won in investment funds, was sentenced to 18 years in prison in the first trial.

According to the legal community on July 12, the Seoul Central District Court's Criminal Agreement Division 23 (Chief Judge Oh Seyong) sentenced CEO Lee, who was charged with fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to 18 years in prison and ordered the forfeiture of approximately 14.19 billion won on July 7.

CEO Lee, who operated Seojeong Art Center, was brought to trial on charges of soliciting investors since the mid-2010s by saying, "If you purchase an artwork and leave it with the center for one year, we will pay you a fixed monthly return through exhibitions, advertising, and sponsorships."

The court stated that it was found CEO Lee defrauded 981 victims of over 100 billion won in investment funds between 2016 and 2025. The court pointed out, "By capitalizing on the public's interest in art as a safe investment vehicle, he used a so-called 'art-tech' scheme—falsely promising that investors could gain high returns by owning art and were guaranteed principal repayment through repurchase." The court further criticized, "Since the crime involved high-value artworks, most victims suffered significant economic losses, and some lost nearly all their assets, resulting in severe damages." It was also noted that CEO Lee managed Seojeong Art Center's funds and acquired criminal proceeds worth approximately 14.1 billion won, enabling a luxurious lifestyle.

The court remarked, "This crime has had a detrimental impact on Korea's art market, causing substantial social harm," and "it has distorted the sound economic order and resulted in numerous victims."

Regarding CEO Lee's claim that the dealers who recruited investors were accomplices and thus could not be considered victims, the court rejected this, stating, "There is insufficient evidence to conclude that the dealers recognized the Ponzi-like structure of Seojeong Art Center's funds or participated in the crime." The court also stated that the fact no measures were taken to recover the losses after the crime was exposed, and that the majority of victims have petitioned for strict punishment, were taken into account during sentencing.

The police launched an investigation after complaints from victims, arrested CEO Lee in December of last year, and handed the case over to the prosecution. In January, the prosecution indicted him while he remained in custody.

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