Police Conduct Search and Seizure on Real Estate Company K-Samhung Over Suspected Fraud Worth Billions

The police have launched a search and seizure operation against K-Samhung, suspected of embezzling real estate investment funds worth hundreds of billions of won.

[Image source=Yonhap News]

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit has been conducting a search and seizure since 8 a.m. on the 14th at the headquarters office of K-Samhung located in Jung-gu, Seoul, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes and the Act on the Regulation of Similar Credit Transactions.

K-Samhung, established in 2021, is a real estate investment platform company that attracted investors by claiming it could generate profits by purchasing land planned for development by the government or local governments and then transferring ownership to receive compensation once the development project was confirmed.

They reportedly operated the company in a multi-level marketing style, setting up seven branch offices nationwide and promising monthly dividend returns of over 2%, with higher-ranking positions receiving greater profits.

So far, more than 1,000 victims have been identified, and the estimated damage is believed to amount to hundreds of billions of won.

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