This article was displayed on the ChosunBiz RM Report site at 9:53 a.m. on Jun. 19, 2025.
Kim Hyun-jae, chairman of K.Samheung, was reportedly released on bail last month while facing trial on first charges of real estate investment fraud worth 500 billion won.
The Seoul Central District Court Criminal Division 35’s Director General, Baek Dae-hyun, accepted Kim’s bail application on May 1. Kim was arrested and indicted on Nov. 12 last year. Under the Criminal Procedure Act, the detention period in the first trial is six months. He was released before the detention period expired.
The bail conditions include a deposit of 30 million won, residence restrictions, and mandatory appearance at the designated time and place when summoned by the court. He must obtain court permission if he wishes to travel abroad or for more than three days, and he must not flee or destroy evidence.
Previously, the Seoul Central District Prosecutors' Office arrested and indicted Kim and three K Sam-heung executives in November last year, on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, violation of the Act on the Regulation of Conducting Similar Receipt Business, and violation of the Door-to-Door Sales Act.
They are accused of soliciting investors through internet advertisements from September 2021 to April 2024 and deceptively promising a 5-8% revenue on investments in a ‘land compensation project’ where land, to be developed by the government or local authorities, was purchased in advance and compensated upon confirmation of development. The investigation revealed approximately 2,200 victims with damages amounting to over 528 billion won.
In 2007, Kim was also put on trial for a ‘planned real estate’ scam, falsely claiming that land with little or no economic value could be developed. Kim was found to have embezzled approximately 7.4 billion won from investors and 24.5 billion won of company funds, resulting in a three-year prison sentence and a fine of 8.1 billion won.
Meanwhile, at the request of Kim’s side, the fifth hearing of the case, which was scheduled for today (19th), has been rescheduled for Jul. 21.