South Korean police make arrests over alleged US$21m laundering scheme involving four casinos
Suspects allegedly used casino-linked accounts, cheques and baccarat wagers to make illicit funds appear to originate from legitimate gambling.
South Korea.- Police have arrested 54 people accused of laundering KRW28.7bn (US$21.5m) in investment fraud proceeds through four South Korean casinos, including Kangwon Land. The Busan Metropolitan Police Agency announced the arrests on October 15, saying the alleged scheme operated between October and December 2025 and involved funds stolen from 555 victims by an overseas investment fraud network. The suspects allegedly used casino transactions to disguise the origin of the proceeds before transferring the money to the organisation behind the investment scam.
The scam allegedly lured victims with promises of high returns and used fabricated websites to make their investments appear legitimate. Investigators said the network recruited casino VIP customers and permanent residents eligible to enter foreigner-only casinos. The scheme allegedly allowed the group to move large sums while exploiting casino procedures for converting gaming chips back into cash.
The operation initially relied on casino-linked bank accounts to purchase chips, police say. After the accounts were frozen, the suspects allegedly switched to withdrawing money by cheque and exchanging the funds for chips at casino counters. They then placed baccarat bets to make the transactions appear to involve legitimate gambling activity. In some cases, two participants bet on opposing outcomes to limit potential losses before cashing out their remaining chips.
Police said the network used concealed locations inside casino premises to transfer cash between members. The money was then passed to couriers for delivery to the overseas fraud organisation.
Authorities seized KRW111m (US$83,330) in cash, mobile phones and computers during the investigation. A court also approved the preservation of assets worth KRW390m (US$292,808), including real estate, ahead of potential confiscation. Fourteen suspects, including the alleged ringleader, have been detained and referred for prosecution. Three suspects had previously been wanted by police, including one who had evaded arrest for eight years in connection with a separate money laundering case.
As the investigation into the overseas fraud network continues, police have proposed closer monitoring of high-value bets and cash withdrawals to reduce the risk of casinos being used to launder criminal proceeds. The recommendations were submitted to casino operators and South Korea’s Ministry of Culture, Sports and Tourism.
