Composer and entertainer Yoo Jae-hwan has been referred to the prosecution without detention on fraud charges.
🚔 Fraud Charges Over "Free Composition" Project
On May 8, the Seodaemun Police Department confirmed that Yoo was sent to the Seoul Western District Prosecutors' Office in March. He is accused of deceiving aspiring musicians by falsely offering free music composition and collecting money under misleading pretenses.
Back in March 2022, Yoo launched a "Composition Project 1st Round" via social media, claiming he would compose songs for free, requesting only ₩1.3 million (~$950 USD) per applicant as a so-called "labor cost."
🎵 Victims Paid—But Songs Never Came
Victim A paid the fee but claims the project never progressed. Meanwhile, Yoo allegedly began recruiting for a "2nd round" without completing the first, collecting additional payments from new participants.
According to reports, Yoo collected approximately ₩55 million (~$40,000 USD) from multiple participants, allegedly using the funds from new recruits to refund earlier victims—a tactic resembling a Ponzi scheme.
⚖️ Legal Disputes & Investigations
- May 2023: Victim A filed a fraud complaint against Yoo.
- August 2023: A victims' group filed a collective complaint.
- January 2024: The Gangseo Police Department decided not to indict, citing lack of evidence.
- The victims' group has since filed an objection and gathered more statements to reopen the case.
