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CH107 | VOC
🕑 Added 2025-04-08 09:12:54 +0000 UTC“A bomb?”
I said to Park Jong-bum and Maru with a grim expression,
“Yes, it’s a money laundering scheme. They’re using the government as a patsy, circulating the same gold and pocketing the VAT refunds.”
I said in awe,
“Wow, we almost missed it.”
Import and export figures were usually confidential business information.
We were only able to see the 100-ton increase because it was the early stages of their scheme.
In a month, the numbers would have ballooned to hundreds of tons, making it impossible to connect it to the gold collected through the gold collection campaign.
“The government is so gullible. How can they be so naive?”
“The government? What about them?”
I scoffed.
“It’s simple. They’re pocketing the VAT refunds.”
“VAT refunds?”
“Yes. Normally, there’s a 10% VAT on both domestic and international gold transactions. But the government started offering VAT refunds on gold exports to boost competitiveness after the gold collection campaign started.”
“Yes.”
I drew three circles on a piece of paper.
“Look, this is the overseas company, this is the trading company, and this is the key: the shell company.”
I explained to Maru, who still looked confused.
“Let’s say the trading company sells the gold to the overseas company for 970 won. Then the overseas company sells it back to the shell company for 1,000 won. And the shell company sells it back to the trading company domestically for 950 won. Since it’s a domestic transaction, there’s a 10% VAT. So the trading company has effectively bought the gold for 1,045 won (950 won + 95 won VAT). Then they sell it back to the overseas company for 970 won and claim a VAT refund from the government. The government refunds the 95 won, and the trading company and the overseas company pocket the difference.”
Park Jong-bum, seeing Maru’s confused expression, said,
“So the VAT refund…”
“Yes. It looks like a normal transaction, but then the shell company disappears. The 95 won refunded to the trading company should have been paid to the government by the shell company, but since the shell company is gone, the government is effectively giving away free money.”
My eyes gleamed.
“The trading company and the overseas company are colluding, circulating the same gold and pocketing the VAT refunds. And with the increased gold supply from the gold collection campaign, the scale of the scam is massive. And it’s gold, so they can just melt it down and erase the evidence. It’s the perfect crime.”
Park Jong-bum said incredulously,
“I’m more impressed by you figuring this out than by the trading companies coming up with it.”
I scratched the back of my head.
“Well, I’m a specialist in tax evasion. And this is a common tactic, it’s just that they’re using it with gold.”
I had helped countless CEOs create slush funds, handled illegal cash transactions, and even built a multi-billion dollar black market empire.
The gold collection campaign and the unique nature of gold had initially obscured the scheme, but it was a basic tactic.
But combined with gold and the gold collection campaign, it was the perfect plan.
“This is either pure luck or genius. This wouldn’t have been possible without the gold collection campaign. If tens of tons of gold were circulating like this under normal circumstances, the price fluctuations would be massive, and they could lose money. But the gold from the gold collection campaign is unexpected in the international market, so it’s safe to use it for this scheme. And I thought the gold price was falling because of the increased supply from the gold collection campaign, but it’s just a temporary shock. The gold isn’t actually entering the market, they’re just circulating it among themselves.”
Park Jong-bum said with a serious expression, as I marveled at their scheme,
“If this is true, it’ll cause a national scandal.”
Maru’s face turned red with anger.
“So those bastards are using the gold collection campaign for their own profit?! How dare they?!”
I looked at the data again.
“The world is vast, and there are many crazy people. I should learn from them.”
“Hyung, how can you say that? They’re mocking the people who donated their gold!”
“It’s not my problem. They donated it voluntarily. And they got the satisfaction of contributing to the national economy. They might have been ripped off, but they received payment. It was their decision, who can they blame?”
“But still, this is wrong!”
I shook my head.
“Opportunity favors those who seize it. The trading companies just seized the opportunity. It’s just…”
“Just?”
“…a shame that it wasn’t me. Those bastards are clever. I thought they were suckers, but they’re actually quite smart.”
“This is so frustrating.”
I ignored Maru and said to Park Jong-bum,
“What should we do? Expose them?”
“It’ll be difficult. The seven trading companies handling the gold from the gold collection campaign are all subsidiaries of chaebols. And this is just circumstantial evidence.”
I licked my lips.
“I don’t want to just sit back and watch them profit.”
“I’ll think of a solution.”
I gestured to Maru, who was still fuming.
“Calm down, Maru. It won’t change anything.”
“But!”
“I’ll take care of it. It’s not your money they’re playing with.”
Maru suddenly shut up.
I looked at him, surprised.
“Don’t tell me…”
“…”
“You contributed to the gold collection campaign?”
“…A little.”
I jumped up and slapped him on the back of his head.
“Ouch!”
“You idiot! What were you thinking? Why would you do such a stupid thing?!”
Maru rubbed the back of his head.
“I just… they said it would help the country, so I sold some of the gold we had at home. About 1 million won worth. How was I supposed to know this would happen?”
“You idiot. Isn’t that right, Director Park?”
Park Jong-bum avoided my gaze.
“Don’t tell me…”
“It wasn’t me… my wife sold some…”
“Ugh, seriously…”
I sat back down on the sofa.
“I can’t let this slide. They’re playing with our family’s money.”
I used my family as an excuse, but the real reason I wanted to get involved was because I was envious.
How dare they make a fortune while I’m sitting here?
And in my experience, the more illegal the activity, the more opportunities for profit.
I smiled slyly.
“Let’s start the investigation.”
* * *
“I was right.”
It wasn’t difficult to find the shell company.
It was rare for a new company to generate such a large amount of sales in the raw materials market, so it stood out.
And with Hanho Savings Bank’s resources, it was easy to track them down.
“Brio Metals. A company that’s only been around for a month, with estimated sales of 200 billion won.”
Maru tilted his head.
“Shouldn’t it be trillions of won if it’s 100 tons of gold?”
“You idiot, that was just an example. Do you think there’s only one shell company? There must be at least one for each of the seven trading companies. Brio Metals is just the largest one, so it’s the most noticeable.”
Park Jong-bum reviewed the documents.
“It seems like the most likely candidate. It’s not a scale a new company would normally operate at.”
“The problem is how to handle this. We need concrete evidence. If we attack recklessly, we’ll be the ones who get hurt.”
“That’s right. It’s a new administration. They won’t tolerate this kind of corruption. And neither will the chaebols.”
Maru’s eyes lit up.
“If it’s a shell company, the CEO must be a puppet. How about we try to persuade or coerce him?”
I shook my head.
“It won’t be easy. This is a multi-trillion won operation. They wouldn’t be that careless. They probably just used a homeless person’s name and ID. It’ll take forever to find him.”
“It wouldn’t hurt to try. Should we look for him?”
I hesitated and then nodded.
“Alright, look for him. But be careful. They might retaliate if they find out we’re looking for their puppet CEO.”
“Of course.”
“We’ll proceed with that, but it would be more impactful if we could expose them directly.”
If we could find the gold donated by the public and return it to its original owners, their anger and betrayal would be immense.
And if their anger exploded, the government and the chaebols would be powerless to stop them.
But Park Jong-bum shook his head skeptically.
“That’s impossible. There must be millions of pieces of jewelry. It’s like finding a needle in a haystack.”
“There must be a way…”
It wasn’t easy to find an opening.
“We need to gather more information. We’re just assuming it’s a shell company, we don’t have any proof.”
“That’s right. Verification is essential. It would be best to infiltrate the company and confirm it ourselves, but that’s not easy. Their security must be tight.”
Park Jong-bum smiled.
“You can infiltrate it yourself.”
“What? How?”
“You seem to be forgetting our main business. We’re the largest junkyard in Korea. We have connections everywhere. And where there are people, there’s trash. They must have a junkyard they’re working with, and it’s highly likely that it’s one of our clients.”
* * *
“Oh, it’s an honor to meet CEO Park Sol of Chunha Trading in person.”
“You’re too kind. Thank you.”
The owner of a small junkyard near Brio Metals greeted me enthusiastically.
“Too kind? You’re a legend in this industry! I’m a huge fan! I’m on your side!”
I smiled awkwardly, slightly embarrassed by his over-the-top flattery.
“Haha.”
“Thanks to you, I’ve become a much better junkyard owner. I’m always grateful. It’s a pleasure to finally meet you in person. I’ll have to brag about this to the other junkyard owners tonight.”
My carefully crafted image as a self-made entrepreneur who hadn’t forgotten his roots and supported the underprivileged was paying off.
“This place is a bit shabby, I don’t know where to have you sit…”
“It’s fine. It’s clean and cozy.”
I dusted off a metal box and sat down.
“I’m a junkyard owner too. I’m not picky, so don’t worry.”
The junkyard owner slapped his forehead.
“A CEO of a large company, and you’re so down-to-earth. I knew I was on the right side.”
“Haha, you’re too kind.”
“Wait here, I’ll make you some coffee.”
He returned with a cup of instant coffee.
“By the way, why were you asking about Brio Metals? They don’t generate much scrap.”
My eyes gleamed.
“What kind of scrap do they usually generate?”
“Mostly waste paper and plastic. Nothing special.”
“Anything, no matter how small, is welcome.”
The junkyard owner thought for a moment and shook his head.
“Nothing comes to mind.”
I had to infiltrate the company myself.
I smiled.
“Sir, can you do me a favor? I’ll compensate you generously.”
TL/n -
VAT stands for Value-Added Tax. It's a tax added to goods and services. For example, when a company sells something domestically, they charge VAT on the sale. But if the goods are sold internationally (like for export), they can get a refund for the VAT paid.
Shell Companies: These are fake or "dummy" companies that exist only on paper, not in reality. They don't actually do any real business; they are just used to hide or manipulate transactions.
The Gold Trading: The scam started with the trading company selling gold to an overseas company for 970 won. Then, the overseas company sold the gold to a shell company for 1,000 won. The shell company was part of the scam, and it didn’t really add any value; it was just there to make the transaction seem real.
VAT Payment: In a domestic transaction, when the shell company sells gold back to the trading company in South Korea for 950 won, the trading company has to pay 10% VAT on that purchase. So, the trading company ends up paying 95 won as VAT, making the total price 1,045 won (950 won + 95 won VAT).
VAT Refund: Now, the trading company sells the gold back to the overseas company for 970 won, which is an export sale. Since it's an export, export sales don’t have to pay VAT, and the trading company can claim a VAT refund of 95 won from the government (the VAT they paid earlier).
The problem is that the shell company never actually paid the VAT to the government. So, when the government gives the 95 won VAT refund to the trading company, it's like the government is giving out money without the shell company having paid it back.
The Result:
- The trading company gets the VAT refund, even though they didn't technically pay it (because the shell company is fake and didn’t actually pay the tax).
- The trading company and overseas company work together to pocket the money, making a profit from the VAT refund.
- This process makes it seem like everything is normal, but it’s all just a clever way to steal money through fake transactions and VAT refunds.
In short, the shell companies were used to create fake sales and loop money back to the scammers while the government gave out refunds that weren’t really owed.
