South Korean man jailed for receiving S$1.55b in cash, buying 28 tonnes of gold bars in Singapore for export
Among the offences Kim Taek Hoon was convicted of were two counts of cheating logistics providers and one count of failing to report the cash packages.
File photo of gold bars. (Photo: iStock)
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SINGAPORE: A South Korean man was sentenced to 60 months' jail on Wednesday (Oct 1) after receiving more than S$1.55 billion (US$1.2 billion) in cash, buying about 28 tonnes of gold bars in Singapore and sending them to South Korea and Japan.
Kim Taek Hoon, 64, was convicted of two counts of cheating logistics providers, one count of cheating Singapore Customs, one count of failing to report the cash packages, and one count of converting cash that he believed was criminal proceeds.
These charges involved receiving more than S$761 million in cash and buying nearly 13 tonnes of gold bars.
Another 16 charges, involving the remaining amount of money and gold bars, were taken into consideration for sentencing.
These include cheating offences, failing to make a report in relation to cash exceeding S$20,000 and money laundering offences.
Investigations by the Commercial Affairs Department (CAD) revealed that between 2014 and 2017, Kim received cash from South Korea and Japan that was concealed in shipments of grease pumps.
Anyone who receives cash exceeding S$20,000 or its equivalent in foreign currency from outside Singapore must report it within five business days.
Between January 2017 and May 2017, he received packages amounting to at least S$761 million from outside Singapore.
"Kim failed to make any of the requisite reports on the movement of the cash in accordance with the law," said the Singapore Police Force (SPF).
CAD’s findings also showed that Kim had reason to believe that the cash received from overseas was derived from his accomplice’s involvement in criminal conduct and believed it was sent to him as part of an illegal activity.
Between January 2017 and May 2017, Kim bought 12,907 1kg gold bars from a jewellery wholesaler in Singapore.
He then hid the gold bars in shipments of air impact wrenches for export to South Korea and Japan through three logistics providers in Singapore, without declaring the gold bars.
Kim made 153 exports to South Korea containing 3,174 gold bars from January 2015 to December 2015. He cheated Pantos Logistics into thinking they only consisted of air impact wrenches.
Between January 2017 and May 2017, he cheated Cosmo SCM that 86 exports to South Korea and Japan only contained air impact wrenches, when these exports contained more than 14,000 gold bars.
The Suspicious Transaction Reporting Office detected possible smuggling activities through its analysis of financial intelligence and exchange of information with foreign counterparts, leading to a further probe into the case by the CAD, said the police.
Formal investigations were launched with various agencies, including Customs and the Anti-Money Laundering/Countering the Financing of Terrorism division of the Ministry of Law.
Information was also shared among the authorities in Singapore, South Korea, Japan and Interpol.
Kim was arrested in December 2023.
CAD Director David Chew said: "Singapore faces an inherent risk of trade-based money laundering given its position as a financial centre and a leading regional trade and transportation hub."
He said that this case illustrates the Suspicious Transaction Reporting Office's ability to detect abuse of Singapore's status as a trade hub to launder illicit money, as well as its ability to work with overseas counterparts.
"Close inter-agency coordination and effective international cooperation facilitated information sharing, which was instrumental in the detection and dismantling of this criminal syndicate’s money laundering operations," he added.
He also thanked his South Korean and Japanese counterparts, as well as Interpol, for their help in the investigations.
