Tae Lim Oh talked big expounding his expertise in gold mining during discussions with fellow Koreans living in New Zealand, talk which resulted in the High Court ordering he pay USD350,000 for deceit in relation to his claims about potential profitability of a proposed Mongolia mining venture and a further NZD571,400 for breach of contract after failing to repay a loan from Chong Chu Kim and In Suk Kim.
The High Court was told the Kim and Oh families both lived in Auckland. Talk of profitable investment in Mongolia first surfaced within a friendship circle of Korean wives with Mr Oh’s spouse kindling interest.
Evidence was given of Mr Oh being appointed in 2017 as representative of Mongolian mining interests with the task of ‘inviting investment.’ By that date, he was already generating investment interest from New Zealand domiciled Koreans.
Mr & Mrs Kim decided to invest. The High Court was to later hear disputed evidence as to what was said by Mr Oh prior to their investment.
As events transpired, little progress was made on the proposed mining venture. Initial production levels proved disappointing. Production ceased. More money was needed to expand operations into nearby licence areas.
When the Kims expressed their dismay at the outcome, Mr Oh agreed to buy out their interest with deferred payment in the form of a one year loan with interest at 5.8 per cent. The loan was not repaid, though some monthly interest payments were met.
Justice Gordon ruled that Mr Oh had promoted himself as an expert in gold mining. He talked of involvement with mining activities in both Africa and Asia, supported by photographs of himself on site. He dropped into conversation the fact of his investment in an African mine, failing to mention that this investment amounted to about USD30,000 and that this investment later proved worthless.
Mr Oh’s claim that he did not promote himself as an expert, but rather that he was only ‘familiar’ with mining, did not stand up against evidence from another Korean living in Auckland. She also had invested in Mongolia after receiving the same marketing spiel from Mr Oh as that presented to the Kims.
Justice Gordon ruled Mr Oh had touted that there was no risk to the Mongolia investment and that success was one hundred per cent guaranteed.
Mr Oh was held liable in both deceit (for making statements he knew to be untrue or making statements recklessly without caring as to their truth) and negligence (after holding himself out as having expertise in gold mining and offering investment advice knowing the Kims would be relying on this advice).
Both Mr Oh and his spouse were ordered to repay the loan and arrears of interest arising from their purchase of the Kims’ Mongolia mining investment.
Kim v. Oh – High Court (23.05.24)
24.130