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 more than 100 billion won from investors under the guise of guaranteed returns on art investments.
On July 7, the Seoul Central District Court’s Criminal Agreement Division 23 (Presiding Judge Oh Se-yong) sentenced the CEO, identified by his surname Lee, to 18 years in prison and ordered the forfeiture of approximately 14.19 billion won for charges including 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 monthly fixed returns through exhibitions, advertisements, and sponsorships."
The court stated that it was proven 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,' exploiting the public's interest and desire to invest in artwork as a safe financial tool. He deceived investors by making it appear as though they could own artwork, earn high returns, and even have their principal guaranteed through buyback agreements."
The court further criticized the defendant, stating, "As the crimes involved high-priced artworks, most victims suffered significant financial damage, with some losing nearly their entire assets."
The court also noted that Lee managed the funds of Seojeong Art Center to acquire 14.1 billion won in criminal proceeds, which he used to fund a luxurious lifestyle.
"This crime can be seen as having a negative impact on the South Korean art market, causing significant social harm," the court remarked. "It distorted sound economic order and created a large number of victims."
Police, who launched an investigation following complaints from victims, arrested Lee in December of last year and referred 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.