Police Launch Investigation into Gallery That Promised Copyright Fees and Then Disappeared

Disappeared After Attracting Investors With Promises of Copyright Profits
Victims Spread Nationwide Due to Non-Face-to-Face Contracts
Over 60 Victims Reported So Far

The police are investigating the CEO of Dongbaek Art Gallery and others who disappeared after recruiting investors by luring them with copyright profits from famous overseas artworks.

According to the police on the 1st, the Gyeonggi Southern Provincial Police Agency has been investigating the CEO of Dongbaek Art Gallery and others since the end of last year on suspicion of running a Ponzi scheme, a type of multi-level financial fraud, reported Yonhap News Agency.

The gallery informed art investors, who were victims, that by paying money and owning a partial share of the copyright of famous overseas artworks, they could receive a fixed monthly amount of copyright royalties. It was introduced as a type of so-called 'Art-tech,' meaning financial investment through artworks.

The copyright royalties they proposed ranged from a minimum of 4% to a maximum of 80%, which was much higher than interest rates at commercial banks. However, starting from December last year, the gallery stopped paying royalties contrary to the contract and eventually disappeared.

So far, about 60 victims have reported to the police. The victims claimed that the amount of damage reached around 5 billion KRW. Considering that the gallery disappeared relatively recently, the number of victims is expected to increase. The victims have also hired a law firm and are pursuing civil lawsuits.

In Busan, an accident occurred where a victim who invested in the gallery and was defrauded passed away. Three family members who invested together in the gallery and lost about 300 million KRW were found collapsed at their home. The mother in her 60s and her second daughter in her 40s were transferred to the hospital and survived, but the eldest daughter in her 40s died.

At the time of the incident, contracts were made online and non-face-to-face, so the victims are scattered across the country.

Police stations in various regions that received complaints from victims are transferring the cases to the Gyeonggi Southern Provincial Police Agency, which is overseeing the investigation. A police official stated, "We are currently receiving complaints and are in the early stages of investigation," adding, "We cannot disclose specific details as the investigation is ongoing."

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