The CEO of Seojeong Art Center has been sentenced to 18 years in prison in the first trial for embezzling 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 faces charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes.
Lee was indicted for soliciting investors while operating the Seojeong Art Center, promising them that if they purchased artworks and entrusted them to the center for one year, they would receive monthly returns generated through exhibitions, advertisements, and sponsorships.
The court acknowledged that Lee swindled more than 100 billion won from 981 victims between 2016 and 2025.
The court noted, "The defendant used a new type of scheme known as 'art-tech,' exploiting public interest and desire for art as a safe investment vehicle. He deceived investors by claiming they could own art, 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 all of their assets."
The court also mentioned that Lee used the funds from the Seojeong Art Center to acquire 14.1 billion won in criminal proceeds, which he used to fund a lavish lifestyle.
"This crime has had 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."
Following complaints from victims, the police launched an investigation, arrested Lee in December of last year, and referred him to the prosecution. The prosecution indicted him while in custody in January of this year.
(Photo: Yonhap News)