South Korean police detain 12 over alleged illegal gambling money laundering scheme
Police in Gwangju have referred 19 people to prosecutors after uncovering two organisations accused of laundering money.
South Korea.- Police claim to have dismantled two criminal organisations allegedly involved in laundering proceeds from illegal gambling sites through a network of bank accounts. The Gwangju Metropolitan Police Agency said 12 suspects were detained and referred to prosecutors, while seven others were referred without detention.
The groups allegedly operated for about one year from July 2025, receiving KRW506.2bn (US$365m) through 107 burner accounts. Investigators said the ringleaders negotiated laundering fees with illegal gambling operators, while managers controlled the accounts and other members handled deposits, transfers and cash withdrawals. Instructions were reportedly exchanged through Telegram, with members using aliases and often unaware of each other’s identities.
The Daegu-based group allegedly laundered KRW482.8bn (US$348m) through 62 accounts, while the Busan-based organisation handled KRW23.4bn (US$16.9m) through 45 accounts. Some 160 account holders have been referred over allegations that they handed over bankbooks or cheque cards in exchange for money.
Police analysed around 300 financial accounts, mobile phones and Telegram conversations before carrying out 20 search and seizure operations across the country. They seized KRW243m (US$175,000) in cash, two luxury watches and designer clothing, and sought the preservation of approximately KRW2.595bn (US$1.87m) in assets belonging to eight suspects.
