Team Leader Denies Charges of Facilitating Illegal Transactions Worth 7 Trillion Won with Luxury Goods Received

The team leader of a futures company, who was prosecuted for receiving luxury goods and wine hospitality and assisting illegal foreign exchange transactions worth around 7 trillion won, denied the main charges at the first trial.

The Criminal Division 11 of Daegu District Court (Presiding Judge Lee Jong-gil) held the first hearing on the 14th for four people, including NH Futures team leader A (42), who was detained and indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes, and deputy manager B (39), who was indicted without detention.

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A’s defense attorney stated, “The defendant did not deceive bank employees and was not in a position to verify unreported capital transactions,” denying the charges of obstruction of business and aiding violations of the Foreign Exchange Transactions Act.

While acknowledging that A received money and goods from foreign investors, the defense argued, “It is clear that the watches and bags were brought in from Hong Kong, so the amount received does not match the indictment’s claim, which specifies the amount based on domestic transaction prices.”

The defense for B (39), who was indicted without detention, also denied involvement in foreign exchange-related transactions but largely admitted to receiving luxury bags and other items. The other three employees all admitted to the charges.

A and B were prosecuted on charges of colluding with a foreign investor (currently wanted) to deceive banks by submitting remittance applications with false fund confirmation documents, pretending the funds were for derivative product requirements, and transferring approximately 5.7845 trillion won worth of foreign currency overseas 420 times from August 2019 to August last year.

They are also accused of facilitating foreign exchange transactions worth about 1.2075 trillion won in 411 cases without reporting by the foreign investor.

Through these related crimes, the foreign investor traded virtual assets worth around 7 trillion won by purchasing them overseas and selling them on domestic exchanges, earning approximately 250 billion won in profits from the so-called “Kimchi Premium” difference.

During this process, it was investigated that A received luxury watches, bags, cash, and other items worth about 58 million won, and the employees each received from several million to tens of millions of won, totaling over 100 million won in money and hospitality. The next trial for A and others is scheduled for the 17th of next month.

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