FSS warns of investment scam impersonating Mongolia's G Bank for high-yield bonds www.biz.chosun.com
The Financial Supervisory Service recently issued a "consumer alert" noting that advertisements for investment scams claiming to sell high-yield offshore bonds by Mongolia's largest bank have spread, primarily online.
The FSS stated on the 23rd that claims made on social media (SNS) that investing in dollar-denominated bonds issued by Mongolia's G Bank would yield a stable high return of 11% annually are misleading and that this is a non-existent investment scam.
According to the FSS, it appears that the illegal entity exploited the high-return expectations for Mongolia, an emerging country, and the difficulty in verifying the existence of the bank.
Recently, G Bank in Mongolia confirmed an investment scam using its name and requested action from the FSS through the Ministry of Foreign Affairs. G Bank conveyed that it does not sell bonds directly in Korea through the South Korean Embassy in Mongolia.
They posed as a legitimate financial entity known as G Bond Company, falsely presenting it as a regular financial firm and posting numerous misleading articles on YouTube and SNS.
Through their postings, they emphasized that due to the characteristics of Mongolia's benchmark interest rate (approximately 10% at the end of last year), the dollar-denominated bonds sold by G Bond Company could generate a high interest income of 11.7% annually and that the risk of exchange rate losses due to fluctuations is low. They also posted fake investment success stories and tips related to G Bonds online, attracting investors with dozens of positive comments.
Subsequently, the illegal entity induced investment deposits into accounts under corporate names similar to their registration, similar to entering personal information on the G Bond Company website, before disappearing. The accounts are believed to be "shell accounts," established under a corporation with a name similar to the impersonated company to avoid suspicion.
An FSS official said, "Even foreign commercial banks are illegal if they sell bonds directly in the country without authorization under the law," and added, "If online advertisements claim that investing in overseas dollar-denominated bonds can yield stable high returns, it may be an investment scam, so caution is advised."
BY
Kang Jung-a
Published Date:2025-04-24