"Claimed to Be Close to Bang Si-hyuk"... Composer Who Defrauded 1.3 Billion Won Through BTS Business Scam Again Sentenced to Prison on Appeal

A composer in his 50s, who deceived victims into believing he could pursue BTS-related business by exploiting his alleged close relationship with Bang Si-hyuk, Chairman of HYBE, and subsequently embezzled billions of won, has again received a heavy sentence on appeal.

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According to the legal community on April 15, the Criminal Division 1 of the Suwon High Court (Presiding Judge Shin Hyeonil) dismissed the appeal of composer A, who was tried on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (Fraud), and sentenced him to six years in prison, the same as in the first trial.

In August 2021, A was accused of defrauding 750 million won from the CEO of an information and communication service company and others at his office in Hanam, Gyeonggi Province, by proposing a "business to manufacture and sell BTS-related jeans." He falsely claimed that he could establish a company, acquire the license, and operate the business independently, thus obtaining money under the pretext of acquiring a related company.

During this process, A attempted to gain trust by highlighting his alleged relationship with Bang Si-hyuk, Chairman of HYBE. He deceived the victims by stating, "I am close to Bang Si-hyuk, Chairman of the HYBE Board," and "I have already acquired shares in a company that manufactures and sells BTS slippers and other products."

He was also accused of pocketing 550 million won under the pretense of "lobbying funds," claiming that internal lobbying was necessary to secure the jeans business license.

However, the investigation revealed that A did not actually hold any shares in the company in question, and no related business or discussions had ever taken place with HYBE.

The court of first instance stated, "The defendant defrauded a large sum of money by touting a non-existent business and showed little effort or accomplishment toward actually pursuing the jeans business," adding, "Given his lack of remorse and other factors, the nature of the crime is extremely poor."

A's previous conviction for a similar fraud offense in 2000, for which he served 10 months in prison, also weighed against him in sentencing. However, the court acknowledged that "about half of the defrauded amount appears to have been paid to the related company," and took this into consideration for sentencing.

The appellate court also stated, "Considering the various circumstances in the records and arguments, the sentence in the first trial cannot be deemed excessive," and rejected A's claims.

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