Boohwal's Former Vocal Kim Jae-hee Investigated for Involvement in Massive Fraud Scheme

Kim Jae-hee (54), former vocalist of the renowned rock band Boohwal, has been booked without detention on charges of allegedly participating in a massive investment fraud scheme involving hundreds of billions of won.

According to reports, Kim and 68 other individuals are accused of illegally soliciting approximately 208.9 billion won (around $150 million USD) from over 30,000 investors across 35 branches nationwide between December 2022 and August of last year. The group allegedly operated a 'Ponzi scheme,' promising guaranteed principal returns and high profits, using new investors' funds to pay off earlier investors.

Investigators have identified 306 victims with estimated damages amounting to around 19 billion won (approximately $13 million USD) so far.

Kim Jae-hee's role in the scheme was reportedly as a vice chairman and in-house director. He is said to have attended business presentations, performed songs to promote the company's ventures, and encouraged investments. In exchange, he allegedly received a salary of 100 million won (around $70,000 USD), a luxury vehicle, and other valuables worth 80 million won (approximately $55,000 USD).

Police had previously arrested two co-CEOs of the company and booked Kim and 67 others without detention before handing the case over to prosecutors. During police questioning, Kim reportedly denied the allegations, claiming he was unaware of the fraudulent nature of the business.

Kim Jae-hee is also known as the younger brother of the late Kim Jae-ki, Boohwal's third and fourth vocalist.

Netizens expressed shock and disbelief, with comments like 'This is unbelievable,' and 'Such a shame for a talented artist.' Many are calling for a thorough investigation and appropriate punishment.