By Kim Jae-heun
Police searched the office of Shinil Group Tuesday as part of an investigation into an allegation the company committed investment fraud by inventing a fictitious story that it discovered the wreck of a sunken Russian warship laden with treasure off Ulleung Island, east of the peninsula.
The Seoul Metropolitan Police Agency sent out 27 investigators to confiscate evidence at eight related firms including Shinil Group's Yeouido office and Donskoi International Exchange in Gangseo-gu, both in southwestern Seoul.
Other targeted locations included the homes of key stakeholders involved in the case and a company taking care of Shinil Group's web server.
The search began at 8:30 a.m. and it was focused on securing various accounting documents and electronic equipment such as computers from the office.
On July 15, the group announced it had found the Russian warship Dimitrii Donskoi, which went missing in 1905 during the Russo-Japanese War. It claimed the wreck lies beneath the waters off Ulleung Island by showing submarine footage.
Following the press conference, Shinil Group issued its cryptocurrency Shinil Gold Coin (SGC), with police suspecting it used the story to attract investment.
"Shinil Group Singapore, its affiliate, started pre-selling SGC in May, promoting it as a Donskoi-backed global cryptocurrency, with claims it carried 200 tons of gold worth 150 trillion won ($133 billion).
Shinil Group Singapore told investors one SGC coin will cost 200 won when it's first issued but its value will hike over 10,000 won when SGC is listed in the exchange market.
However, an allegation rose soon after that the value of the shipwreck was calculated groundlessly and Shinil Group held another press conference to squash the rumor that the Donskoi carries 10 trillion worth of gold. However, it submitted 12 trillion won as the estimated value on a registration document asking the Ministry of Oceans and Fisheries for permission to salvage the shipwreck.
Police believe a former Shinil Group chairman surnamed Yu is the mastermind behind the case. Yu established Shinil Group Singapore in the city-state last month and put his sister Ryu Sang-mi in the head position. Ryu reportedly ran the Korean Shinil Group prior to the current president, Choi Yong-seok.
Choi denied the local firm's relationship with the corporate body of the same name in Singapore. Another allegation says that Ryu, too, is also only allowing her brother to use her name and she is just a housewife living in Incheon.
Yu is said to be living in Vietnam and police requested Interpol arrest him, which was accepted on Monday.
Choi is banned from leaving the country.
Police searched the office of Shinil Group Tuesday as part of an investigation into an allegation the company committed investment fraud by inventing a fictitious story that it discovered the wreck of a sunken Russian warship laden with treasure off Ulleung Island, east of the peninsula.
The Seoul Metropolitan Police Agency sent out 27 investigators to confiscate evidence at eight related firms including Shinil Group's Yeouido office and Donskoi International Exchange in Gangseo-gu, both in southwestern Seoul.
Other targeted locations included the homes of key stakeholders involved in the case and a company taking care of Shinil Group's web server.
The search began at 8:30 a.m. and it was focused on securing various accounting documents and electronic equipment such as computers from the office.
On July 15, the group announced it had found the Russian warship Dimitrii Donskoi, which went missing in 1905 during the Russo-Japanese War. It claimed the wreck lies beneath the waters off Ulleung Island by showing submarine footage.
Following the press conference, Shinil Group issued its cryptocurrency Shinil Gold Coin (SGC), with police suspecting it used the story to attract investment.
"Shinil Group Singapore, its affiliate, started pre-selling SGC in May, promoting it as a Donskoi-backed global cryptocurrency, with claims it carried 200 tons of gold worth 150 trillion won ($133 billion).
Shinil Group Singapore told investors one SGC coin will cost 200 won when it's first issued but its value will hike over 10,000 won when SGC is listed in the exchange market.
However, an allegation rose soon after that the value of the shipwreck was calculated groundlessly and Shinil Group held another press conference to squash the rumor that the Donskoi carries 10 trillion worth of gold. However, it submitted 12 trillion won as the estimated value on a registration document asking the Ministry of Oceans and Fisheries for permission to salvage the shipwreck.
Police believe a former Shinil Group chairman surnamed Yu is the mastermind behind the case. Yu established Shinil Group Singapore in the city-state last month and put his sister Ryu Sang-mi in the head position. Ryu reportedly ran the Korean Shinil Group prior to the current president, Choi Yong-seok.
Choi denied the local firm's relationship with the corporate body of the same name in Singapore. Another allegation says that Ryu, too, is also only allowing her brother to use her name and she is just a housewife living in Incheon.
Yu is said to be living in Vietnam and police requested Interpol arrest him, which was accepted on Monday.
Choi is banned from leaving the country.
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