South Korea dismantles US$2bn illegal gambling ring

The syndicate generated an estimated US$122.8m in criminal proceeds, with 87 people apprehended in the investigation.

South Korea.- Police in South Korea claim to have broken up an overseas online gambling syndicate that allegedly processed an estimated KRW2.668tn (US$2bn) in illegal wagers between May 2022 and February this year. The Chungbuk Provincial Police Agency announced the apprehension of 87 people, including alleged domestic and overseas ringleaders, bank account distributors, and high-stakes gamblers, on charges of establishing illegal gaming spaces, violating the National Sports Promotion Act, and organising a criminal group. Eighteen people have been formally detained.

The syndicate allegedly employed a corporate-style organisational structure with a triangular command system with specialised sub-teams for software development, customer service, and financial transactions. To build and maintain its operations, the network allegedly hired university professors, corporate executives, and former employees of global social media platforms through professional headhunters.

The group created a game development company to program its own gambling engines, which were subsequently sold to third-party illegal operators. Leaders based in Dubai reportedly chartered private jets to transport senior members to the 2022 FIFA World Cup in Qatar, where they watched matches from exclusive boxes and distributed high-end luxury watches.

The multi-agency crackdown was initiated in July last year after investigators traced fraudulent bank accounts tied to a separate case, leading to the formation of a Transnational Crime Special Response Task Force involving the National Police Agency, the National Intelligence Service, and international law enforcement. South Korean police have applied for pre-indictment asset preservation on KRW61.9bn (US$46.4m) of the network’s illicit gains and blocked nine illegal gambling domains.