South Korean man, 64, given 60 months' jail in S'pore for receiving S$1.55 billion in cash to buy & export 28 tonnes of gold bars

A 64-year-old South Korean man was sentenced to 60 months' jail on Oct. 1 for buying about 28 tonnes of gold bars in Singapore using more than S$1.55 billion in cash that he received.

Kim Taek Hoon then sent the gold bars to South Korea and Japan.

Convicted on five charges

He was convicted on five charges that involved receiving more than S$761 million in cash and buying 12,907 pieces of 1kg gold bars from a jewellery wholesaler in Singapore.

The charges were: 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 knew was criminal benefits.

Another 16 charges, which involved the remaining amount of money and gold bars, were taken into consideration during sentencing.

They include cheating offences, failing to make a report in relation to cash exceeding the prescribed amount, and money laundering offences.

Received cash from South Korea and Japan

Between 2014 and 2017, Kim received cash from South Korea and Japan that was concealed in shipments of grease pumps, investigations by the Commercial Affairs Department (CAD) revealed.

He did not report that he received cash exceeding S$20,000 or its equivalent in foreign currency from outside Singapore.

He was obligated to do so within five business days.

The Singapore Police Force (SPF) said Kim "failed to make any of the requisite reports on the movement of the cash".

Between January and May of 2017 alone, he received packages amounting to at least S$761 million from outside Singapore.

He bought 12,907 1kg gold bars from a jewellery wholesaler in Singapore during that period of time.

CAD found that Kim had reason to believe that the cash was derived from his accomplice’s involvement in criminal conduct and believed it was sent to him as part of an illegal activity.

The gold bars, which were not declared, were hidden in shipments of air impact wrenches for export to South Korea and Japan through three logistics providers in Singapore.

Details of exports

Between January 2015 to December 2015, Kim made 153 exports of 3,174 1kg gold bars to South Korea.

Pantos Logistics was cheated into thinking the shipments were only of air impact wrenches.

During that time, he also exported about 5,527 1kg gold bars on 264 occasions through Pantos, Cosmo SCM and DHL Express Singapore.

He declared that the exports consisted only of air impact wrench.

Between January 2017 and May 2017, he cheated Cosmo SCM that 86 exports to South Korea and Japan involving 14,184 1kg gold bars only contained air impact wrenches.

Financial intelligence analysis

The police said the Suspicious Transaction Reporting Office detected possible smuggling activities through its analysis of financial intelligence, and exchange of information with foreign counterparts.

This led to a further probe into the case by the CAD.

The Customs and the Anti-Money Laundering / Countering the Financing of Terrorism Division of the Ministry of Law then got involved.

Authorities in Singapore, South Korea, Japan and Interpol shared information.

Kim was arrested in December 2023.

CAD director David Chew said the 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.

He also thanked his South Korean and Japanese counterparts, as well as Interpol for their help.

Top photo via Unsplash