Kim Jae Hee, the fourth vocalist of Boohwal, has been referred to prosecutors on suspicion of participating in a large investment fraud.
According to Incheon Metropolitan Police on Nov. 23, 69 people were sent to the prosecution—some under arrest and others without detention—on charges including violations of the Act on the Regulation of Conducting Fund-Raising Business Without Permission and aggravated fraud under the Specific Economic Crimes Act; Kim Jae Hee was among them. Two alleged ringleaders in their 40s had previously been arrested and referred.
Investigators say the group raised about 208.9 billion KRW (about 155 million USD) in unlawful funds from roughly 30,000 investors between December 2022 and August 2024, and took about 19 billion KRW (about 14 million USD) from 306 of them through a Ponzi-style arrangement that used new deposits to pay earlier investors.
Police said Kim Jae Hee served as a company vice chair and inside director tied to the case. While not an investor himself, he allegedly promoted the business at briefing sessions and even sang at events. He is believed to have received about 100 million KRW (about 74,000 USD) in salary, a car valued at about 60–70 million KRW (about 45,000–52,000 USD), and additional goods worth about 80 million KRW (about 59,000 USD).
During questioning, Kim Jae Hee denied wrongdoing, saying, "I didn’t know it was a fraud."
Kim Jae Hee debuted with Boohwal in 1993 and appeared on the band’s third and fourth albums, including the hit ‘The more I love’. He is the younger brother of the late Kim Jae Gi, Boohwal’s third vocalist.
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