Two South Korean restaurant owners jailed in Vietnam over prostitution scheme

By Binh Nguyen January 6, 2026 | 01:22 am PT

Defendants Cha Jin Young and Kim Tae Hyung (front row) with other defendants at a trial in Ho Chi Minh City, Jan. 5, 2026. Photo by VnExpress/Binh Nguyen

Two South Korean restaurant owners have been sentenced to eight years in prison in Ho Chi Minh City after authorities found they organized prostitution involving employees and paid bribes to avoid business inspections.

The Ho Chi Minh City People's Court on Jan. 5 handed down the sentences to Kim Tae Hyung, 48, and Cha Jin Young, 50, after a one-day trial. Each received five years in prison for organizing prostitution and three additional years for bribery, along with fines of VND30 million (US$1,141).

According to the court, the two men jointly invested in opening a restaurant on Bui Thi Xuan Street in the city downtown in late 2022. When business struggled, prosecutors said they directed staff to arrange sexual services for Korean customers dining at the restaurant.

Investigators found that prostitution fees were deliberately disguised on invoices using coded items, with sexual services listed as "Green jacket 17" at VND3.8 million per person per night. Hotel rooms used for the encounters were falsely recorded as a "large seafood combo" costing VND1 million per room.

The scheme came to light in July 2023, when restaurant manager Lee Hyun Jun instructed staff member Nguyen Thi Ngoc Loan to arrange two women for two Korean men. Loan then contacted a hotel intermediary to book rooms, despite all parties being aware of the purpose.

Lee and Loan were each sentenced to three years in prison for organizing prostitution, while hotel broker Le Tan Thanh received a sentence equal to his pretrial detention.

The case also exposed a separate fraud involving attempts to evade inspections.

Cha testified that the restaurant had not completed all legal procedures when it began operating. He and Kim then paid large sums of money to intermediaries who claimed they could ensure the restaurant would not be checked by authorities.

Court records show the pair handed over a total of VND840 million to Bui Thi Phuong Dung, who, along with accomplice Bui Duy Ha, falsely claimed the money would be used to bribe officials. Investigators later concluded that neither had any influence over authorities and that the funds were misappropriated.

Dung was sentenced to seven years in prison, while Bui Duy Ha received a three-year sentence for fraud.

The court said the defendants' actions seriously violated public order and the law, warranting strict punishment.