Small, independent firm LKH Investment Group was discovered using the names of business tycoons Lee Kun-hee and Koo Ja-hak without permission in an apparent financial scam.

Lee is chairman of Samsung Electronics, international tech giant, and Koo is the third son of the LG Group founder and married to Lee’s sister. Koo is currently the chairman of the restaurant and food services provider Our Home.

On its website, LKH Investment claims that Lee is its chairman while Koo is involved in the practical dealings of its financial schemes.

The Korea Herald spoke to the man claiming to be Koo Ja-hak, but he did not provide any evidence that he was who he claimed to be, or even that he was Korean.

He claimed that the Samsung chairman had financial interests in LKH Investment, but that he was not involved in the company’s day-to-day operations.

The address specified on LKH Investment’s website is the location of an apartment-style factory building in southwestern Seoul.

The building’s superintendent, however, said that no such company was located in the building.

Armadillo Resources, a Canada-based firm contacted by LKH Investment, began to look into the supposedly Seoul-based investor after suspicions arose, with the first being that LKH Investment’s website is registered in the U.S.

Also, Samsung Electronics and Our Home have confirmed that their chairmen had no connection to any such company.

“This is a complete scam. Chairman Lee is not involved in any way. We will decide what steps will be taken, if any action is considered necessary,“ a Samsung Group official said.

The PR department of Koo’s company, Our Home, took the same stance, saying that the real Koo Ja-hak was not involved and that legal actions could follow.

The supposedly Seoul-based LKH Investment has been sending e-mails proposing lucrative deals offering to invest tens of millions of dollars in the recipient’s business.

By Choi He-suk (cheesuk@heraldcorp.com)