Rally held outside Seoul Metropolitan Police Agency; additional charges under consideration
By Jung Joo-won, The Herald Business
"Immediately detain the suspect and find the hidden assets."
Victims of the Jongno jewelry store fraud rallied Thursday outside the Seoul Metropolitan Police Agency's wide-area investigation unit in Jongno-gu, Seoul, urging police to detain the suspect swiftly and take steps to help victims recover their losses. That afternoon, 15 victims issued a statement outside the agency before submitting a petition calling for a more vigorous investigation. The petition bore the names of 50 victims in total.
The victims said more than 200 people have been confirmed as victims so far, with total damages reaching into the hundreds of millions of won. They called the case "not a simple fraud but a social disaster that has destroyed the livelihoods of hundreds of families." They also urged police to immediately detain the suspect and trace hidden assets, warning that the risk of evidence destruction and asset concealment was high given that even the suspect's whereabouts were unknown and the family had disappeared.
The case was first filed with Hyehwa Police Station last month before being transferred to the Seoul Metropolitan Police Agency's wide-area investigation unit. Police have so far received 146 complaints, with estimated damages exceeding 10 billion won ($6.43 million). More than 200 people have gathered in an open group chat for victims, with nine organizers coordinating rallies and response strategies. Victims believe the actual scale of losses is likely far greater, as many affected people have yet to file complaints.
At the rally, victims shared accounts of entrusting a long-frequented jewelry store with wedding gifts, first-birthday rings and retirement savings, only to suffer losses of hundreds of millions of won — with some engagements falling apart or marriages ending in divorce as a result. One victim, surnamed Lee, said she suffered losses of 300 million won after handing over her wedding jewelry, which ultimately led to her engagement being called off. "As one of the organizers, I will keep pushing for a full investigation to the end," she said.
Another victim, surnamed Choi, who lives in Anyang, said a local hair salon owner had introduced customers to the store by advertising cheap gold purchases, leading to a chain of transactions. "There are probably dozens more victims in Anyang alone who have yet to file complaints," Choi said.
Victims also voiced frustration over the pace and approach of the investigation. One victim said police had told them that all victim interviews would be completed before the suspect was questioned, adding: "Doesn't that give the suspect plenty of time to destroy evidence or hide assets in the meantime? Securing the suspect and recovering criminal proceeds should come first."
Some victims are considering filing additional charges under the Act on the Regulation of Conducting Fund-Raising Business without Permission, on top of the existing fraud charges. The transactions took various forms — including payments made under the guise of storage or appreciation fees, and arrangements in which gold held for a set period would yield returns — and victims are consulting lawyers to assess the legal viability of such charges.
However, attorneys say whether the conduct actually meets the legal threshold for such charges requires a separate legal determination. Jung Joo-won, a lawyer at the Yesewon Law Office, said the law generally covers the unauthorized solicitation of funds from an unspecified number of people. "Since this case involved contracts premised on gold transactions, whether it constitutes unauthorized fund-raising leaves room for legal dispute," Jung said.
Jung added that if additional charges are filed, investigators would ultimately determine the matter based on the specific transaction structure and contract terms.
Meanwhile, victims are also considering holding another rally this weekend. No firm date has been set, and they plan to gauge their response based on how the investigation proceeds.
jookapooka@heraldcorp.com
