Korean Police Crack Down on Major Illegal Gambling Operation
Arrest of Seven Suspects in Large-Scale Illegal Gambling Scheme
The Incheon Metropolitan Police Agency in South Korea has successfully apprehended seven individuals implicated in managing a significant illegal gambling ring. The suspects allegedly employed a counterfeit home trading system (HTS) to simulate foreign futures trading, deceiving participants and bypassing legal regulations.
Details of the Operation and Suspected Individuals
Among those arrested are a man in his 40s, identified as Mr. A, who developed the fraudulent HTS software, and a man in his 30s, referred to as Mr. B, who coordinated the gambling operations. Both face charges under the Capital Markets Act for operating an unauthorized investment market and managing an illegal gambling platform.
Investigations revealed that Mr. B’s network distributed the fake HTS program to around 20 partners nationwide, generating approximately 27 billion Korean won (around $19.6 million) from bets linked to international stock indices like the Nasdaq and Hang Seng. Players were required to deposit a minimum of 300,000 KRW (about $220) and could wager up to 400 million KRW (nearly $290,000) per bet. To minimize payout risks, the operators reportedly expelled participants who consistently won.
Authorities confiscated cash totaling 200 million KRW (roughly $145,000) and several luxury watches during a raid at Mr. B’s residence. Preservation orders were placed on assets amounting to 1.9 billion KRW (around $1.4 million), including real estate and vehicles. Additionally, police are pursuing the seizure of 1.2 billion KRW (about $870,000) from Mr. A’s software company.
Furthermore, 138 individuals connected to the operation were booked without detention. These included 23 site operators and 115 participants. It is alleged that Mr. A profited approximately 3.4 billion KRW ($2.5 million) from selling the fake HTS to Mr. B’s group and collected monthly fees between 5 million and 7 million KRW ($3,600 to $5,100) for its use.
A police representative emphasized that investigations into illegal platforms impersonating legitimate investment services are ongoing. The public is urged to remain cautious of fraudulent schemes promoted through phone calls and social media channels.
Overview of Gambling Regulations in South Korea
Gambling laws in Asia vary greatly, with South Korea permitting certain gambling activities under strict control. Despite regulatory restrictions, gambling continues to grow in popularity, with new trends emerging within the country.
While South Koreans cannot legally access domestic casinos, many resort to offshore online casinos. Legally authorized forms of gambling include sports betting and lotteries. However, an underground illegal gambling market persists, as highlighted by recent law enforcement actions. Notably, police dismantled another illicit online gambling operation last month which targeted vulnerable groups including students and seafarers.
