Korean police hit jackpot, bust record $17 billion online gambling network abroad
Police arrested 77 suspects linked to a Southeast Asia-based network accused of operating 188 illegal gambling sites and generating 150 billion won ($113 million) in profits.
A screen shows the operation of an illegal gambling website.CHUNGNAM PROVINCIAL POLICE AGENCY
HONGSEONG COUNTY, South Chungcheong — A Southeast Asia-based criminal network behind Korea's largest illegal online gambling operation — worth 23 trillion won ($17.3 billion) in wagers — has been busted by police.
The Chungnam Provincial Police Agency said it apprehended 77 suspects on charges of operating illegal gambling platforms and organizing a criminal group. Of those, 21 were detained, while the remaining 56 were referred to prosecutors without detention. Among those detained was the group's alleged ringleader, who is in their 50s.
The ringleader and their associates operated out of Vietnam and Cambodia from March 2023 to July this year. They allegedly developed and sold 188 gambling websites that handled a combined 23 trillion won in wagers.
Investigators found that the group generated some 150 billion won in illicit profits. The 23 trillion won in wagers is the largest amount ever traced to an illegal online gambling operation in Korea.
The investigation found that the leader had signed contracts directly with major overseas gaming companies and established a vendor business to distribute game footage and virtual gaming credits supplied by game makers.
The leader then partnered with software development firms that built and sold gambling websites. The operation earned revenue through website distribution and the sale of virtual gaming credits. The software firms also charged gambling site operators between 1.5 million and 3 million won a month for maintenance and management services.
A screen shows the operation of an illegal gambling website.CHUNGNAM PROVINCIAL POLICE AGENCY
A crackdown on a lower-tier gambling operation last November gave the Chungnam police their first leads on the criminal network's top-level suppliers. By tracing 795 bank accounts and examining overseas messaging records, investigators identified the network's leaders and members. Police subsequently arrested 25 suspects in a series of operations.
Police also brought additional charges of organizing a criminal group against 24 suspects after investigators established that the network had a structured division of labor. The leader allegedly oversaw the operation, while other members handled software development, sales and website management.
The vendor company served as an intermediary between overseas gaming providers and gambling website developers. It secured rights to stream gambling games, bought virtual gaming credits and resold them to software providers.
Investigators found that the leader recruited an IT specialist, formerly employed by a major conglomerate, to develop a platform for distributing and managing gaming credits. The software reportedly allowed criminal groups to set up a fully functional gambling website in just 10 minutes.
To evade detection, the network maintained offices in Korea and in Southeast Asian countries, including Vietnam and Cambodia.
Members relocated their offices every one or two months and relied on bank accounts opened under other people's names, overseas servers and Telegram to conceal their activities. Most transactions were conducted in cryptocurrency.
Mobile devices used to operate illegal gambling websitesCHUNGNAM PROVINCIAL POLICE AGENCY
Police are seeking Interpol Red Notices and the forced repatriation of 12 suspects who remain overseas.
Authorities have also shut down 118 gambling websites developed and sold by the network. Another 408 web addresses associated with the sites have been blocked through the Korea Communications Standards Commission.
Police have secured court orders to freeze 9.6 billion won in suspected criminal proceeds held by the leader and other senior members of the operation ahead of prosecution. Law enforcement has also forwarded relevant evidence to the National Tax Service and requested cooperation on tax-evasion investigations and assessments.
"We focused our investigative resources on cutting off the supply of gambling websites at the source after recognizing that new sites continued to emerge despite repeated crackdowns," said an official from the provincial police agency. "We will build on the success of crippling hundreds of overseas gambling websites and continue our crackdown."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
