South Korean investors report losing about $250 million to scam schemes
In South Korea, retail investors reported losing about $250 million to scam schemes involving stock-tip chat rooms. According to police, law enforcement investigated 3,506 such cases from January to June 2026, involving 336 billion won, or $246.57 million.
As Channel NewsAsia reports, citing police data reviewed by Reuters, the number of cases increased by 4.1% compared with the first half of the previous year. At the same time, the amount of money victims said they had lost rose by 19.8%.
Scammers exploited market frenzy
Lawyers specializing in financial fraud told Reuters that the perpetrators played on investors’ fear of missing out on the market’s rapid rise. Inexperienced retail investors were the most vulnerable, they said.
According to Kim In Ho, a specialist at the Jeongbyeok law firm who assists fraud victims, market volatility creates favorable conditions for criminal organizations. Previously, scammers in South Korea focused mainly on cryptocurrency and real-estate schemes, but during this year’s market rally they changed tactics and targeted stock investors.
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In particular, they posted comments under videos by well-known brokerage analysts or financial bloggers to draw followers into private chat rooms. In these groups, participants were either charged for stock recommendations or persuaded to transfer money supposedly for investment.
Investigation into a scheme operating from Cambodia
Seoul police said they arrested 10 people in June in connection with a scheme that operated from Cambodia. According to police, over the two years through February, its participants defrauded 59 South Korean citizens of about 9.9 billion won.
Police said the scheme’s participants posed as employees of brokerage firms and encouraged victims to buy, through fake apps, stocks allegedly recommended by artificial intelligence. The case was referred to prosecutors and is awaiting the scheduling of a trial. South Korea’s financial watchdog said it does not maintain data on illegal investment-advice chat rooms because their investigation falls under the jurisdiction of law enforcement agencies.
