The Hong Kong Securities and Futures Commission (SFC) announced earlier that it had revoked the license of IDS Forex HK Limited. Also, former IDS Forex CEOs, Mr. Chung Wooman and Mr. Ki Bonggan, were banned for life from returning to the industry. The ban is the result of an SFC investigation sparked by a report provided by IDS Forex employees in June 2017. They informed the SFC that IDS Forex’s sole shareholder, Mr. Kim Sunghun, was sentenced to 12 years of imprisonment in Korea in February 2017 for illegal fundraising and fraud after his arrest there in September 2016.
According to information, Kim invited investors between 2011 and 2016 to invest in his alleged overseas business, including margin forex business. Evidence also shows that Mr. Chung Wooman and Mr. Ki Bonggan were aware of Kim’s arrest and conviction shortly after it happened, but they did not report to SFC until the inspection in 2017.