Two South Korean nationals have been sentenced to eight years in prison each in Ho Chi Minh City after a court found they ran a prostitution ring through their restaurant and attempted to bribe officials to avoid inspections. The case has drawn attention to Vietnam’s tougher stance on organized vice crimes linked to foreign owned businesses in prime city locations.
On January 5, the Ho Chi Minh City People’s Court convicted Kim Tae Hyung, 48, and Cha Jin Young, 50, of brokering prostitution and bribery. Each received five years for arranging sex work and three years for offering bribes, along with a fine of VND 30 million.
A front of fine dining, a back end of illegal services
According to the court, Kim and Cha jointly opened a restaurant on Bui Thi Xuan Street in District 1 in late 2022. To boost revenue, they instructed staff to arrange female employees to provide sexual services to Korean customers dining at the venue.
Payments were disguised on invoices using coded items. The prostitution fee appeared as “Green jacket 17” at VND 3.8 million per person per night. Hotel room charges were listed as “Large seafood combo” at VND 1 million per room. The scheme allowed transactions to pass as legitimate restaurant expenses.
How the operation was exposed
On July 19, 2023, restaurant manager Lee Hyun Jun, also South Korean, asked staff member Nguyen Thi Ngoc Loan to arrange two women for two Korean men, totaling VND 7.6 million. Loan contacted Le Tan Thanh, 44, to book two hotel rooms in Ben Nghe Ward. Investigators said Thanh knew the rooms were for prostitution but agreed to assist.
All four were later charged with brokering prostitution. Lee and Loan received three year prison terms. Thanh was sentenced to two years, five months, and fourteen days, equal to time already served in detention.
Bribery attempt turns into fraud
Cha also told the court that when the restaurant opened it had not completed all legal procedures. He asked Bui Thi Phuong Dung, 36, whose husband is Korean, to help “smooth” the paperwork to avoid inspections. Dung and Bui Duy Ha, 41, claimed they could influence authorities.
Trusting them, Kim and Cha paid a total of VND 840 million. Dung passed VND 441 million to Ha and paid him VND 30 million to handle the supposed arrangements. Investigators later found that neither had any real ability to influence officials. The money was simply taken. Dung was sentenced to seven years in prison. Ha received three years for fraud.
Why this matters for international readers
Ho Chi Minh City is one of Southeast Asia’s most dynamic business hubs, attracting large numbers of foreign entrepreneurs, especially in hospitality and nightlife. The case signals that Vietnamese authorities are intensifying scrutiny of illegal activities hidden behind legitimate businesses, including those operated by foreigners.
For investors and expatriates, it is a clear reminder that Vietnam’s enforcement environment is tightening. For the city, it is part of a broader effort to clean up vice activities in central districts that are key to tourism and international image.
Source: Vietnam Insider