CEO of Art Investment Firm Sentenced to 18 Years for 100 Billion Won Fraud

The CEO of Seojeong Art Center has been sentenced to 18 years in prison in the first trial for swindling over 100 billion won from investors under the guise of guaranteed returns on art investments.
The Seoul Central District Court, presided over by Judge Oh Se-yong of the 23rd Criminal Division, sentenced the CEO, identified by his surname Lee, to 18 years in prison on July 7 and ordered the forfeiture of approximately 14.19 billion won. Lee was charged with fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes.
Lee was indicted on charges of soliciting investors while operating the Seojeong Art Center since the mid-2010s by promising that "if you purchase artwork and entrust it to the center for one year, we will provide a fixed monthly profit through exhibitions, advertisements, and sponsorships."
The court stated that it was confirmed that Lee defrauded 981 victims of over 100 billion won between 2016 and 2025.
The court pointed out, "The defendant used a new type of scheme called 'art-tech,' deceiving investors by capitalizing on public interest and desire to invest in artwork as a safe financial tool, falsely promising that they could own art, earn high returns, and even have their principal guaranteed through buybacks."
The court further rebuked the defendant, stating, "As the crimes involved high-priced artworks, most of the victims suffered significant financial damage, with some losing almost all of their assets."
The court also noted that Lee used the funds managed by Seojeong Art Center to acquire 14.1 billion won in criminal proceeds, which he used to fund a luxurious lifestyle.
"This crime can be assessed as having had a negative impact on the South Korean art market, causing significant social harm," the court noted, adding that it "distorted sound economic order and produced a large number of victims."
Police launched an investigation following complaints from victims and arrested Lee in December of last year before referring him to the prosecution. The prosecution indicted him while in custody this past January.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.