EXCLUSIVE: "Three Years of Silence"... Where Did the 3 Billion Won Investment Go?

[Anchor]

The CEO of a well-known land investment firm has been referred to the prosecution on fraud charges. Taking advantage of the recent trend of land investment among young people, the firm allegedly lured investors with promises of high returns, claiming that if they covered the cost of purchasing caravans, they would receive a share of the operating profits.

Kim Minjun has this exclusive report.

[Reporter]

A beach in Seosan, South Chungcheong Province.

Three years ago, a person in their 30s, identified as A, was offered an investment opportunity in a caravan camping site scheduled to be built here.

The pitch was that by covering the cost of a caravan, investors could earn a 40% return through a profit-sharing model based on the site's operations.

[Consultant (Recorded in 2023): We are currently pushing to open (the campsite) in July next year. We expect a return rate of nearly 40%.]

[A: It was 56 million won (per caravan), and they said they could pay me 2.4 million won per month (in returns) for two years.]

A invested 7 million won, but contrary to the company's explanation that profits would begin the following year, three years have passed without receiving a single won.

This is the site where investors believed the caravans and camping cars would be located.

While you can see the ocean, the surrounding area is overgrown with weeds and the land has not been properly cleared.

The CEO of the firm is a well-known figure in the industry, having authored books and held both online and offline lectures on land investment.

The firm also recommended investments in forest land, claiming that if initial capital was provided, they would change the land zoning of company-owned forest to residential land to increase its value and generate profit.

[CEO: You can sell it for a short-term capital gain, or you can build a house on it. Why should we be working (laboring) right now?]

These investment solicitations took place at over a dozen locations across South Chungcheong Province, including Seosan, Taean, and Hongseong. The confirmed investment amount totals 3 billion won, with about 30 investors involved.

The CEO was recently referred to the prosecution after being sued for fraud by investors. However, a post was uploaded to an online cafe early last month announcing another lecture to recruit new investors.

In a statement to SBS, the CEO claimed, "This happened due to embezzlement by a business partner, and we are preparing to resume construction," adding that there was no intention to deceive investors.

However, the business partner in question stated, "I was cleared of the embezzlement charges," and added, "I am also a victim."

Reported by Joo Yong-jin and Kim Se-kyung | Video by Choi Jin-hwa | Graphics by Seo Seung-hyun | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.