Police Conduct Search and Seizure at Hanyanghwa Over Suspected Hundreds of Billions Investment Fraud

The police have launched a forced investigation into the operator of the beef charcoal grill franchise Hanyang Hwaro on suspicion of illegally attracting investment funds worth hundreds of billions of won.

[Image source=Yonhap News]

On the 28th, the Gangnam Police Station in Seoul conducted a search and seizure of the office of Banaba F&B, the operator of Hanyang Hwaro, located in Samseong-dong, Gangnam-gu, as well as the residences of executives and employees, securing related materials.

Park, known as a major shareholder of Banaba F&B, along with other company executives and employees, is accused of gathering investment funds from unspecified numerous investors since 2022 by promising high returns and then failing to return the funds (violations of the Act on the Regulation of Conducting Fund-Raising Business Without Permission and fraud).

Illegal fund-raising refers to the act of conducting a business that procures funds from unspecified numerous people by promising principal protection without permission, registration, or reporting as required by law. If it is proven that money was received despite no possibility of repayment, fraud charges apply.

The police have been receiving complaints from investors nationwide since early this year, with the Gangnam Police Station designated as the main investigative agency. So far, the police have identified about 150 victims, with damages amounting to approximately 20 billion won. The police are examining whether the illegally attracted investment funds were used as operating funds for Hanyang Hwaro and are also checking for any additional damages.

This content was produced with the assistance of AI translation services.