S.Korea police uncover US$21mln casino money laundering scheme
South Korean police have detained 54 people suspected of laundering KRW28.7 billion (US$21.4 million) in investment fraud proceeds through domestic casinos, according to local media reports. The Busan Metropolitan Police Agency said on Thursday that 14 suspects, including the alleged ringleader, ha…
South Korean police have detained 54 people suspected of laundering KRW28.7 billion (US$21.4 million) in investment fraud proceeds through domestic casinos, according to local media reports. The Busan Metropolitan Police Agency said on Thursday that 14 suspects, including the alleged ringleader, had been referred to prosecutors and held in custody. The other 40 were referred to prosecutors without being detained. Those accused allegedly converted fraud proceeds into gaming chips at a number of South Korean casinos, including at the Kangwon Land casino resort and some foreigner-only gaming complexes, before cashing out following baccarat play, reported Yonhap News Agency. The alleged laundering had taken place since October 2025. The money had allegedly been obtained from 555 victims by an overseas-based investment fraud organisation, which promised high returns and used a fraudulent website to make investments appear legitimate, per the media outlets. Investigators said the group initially transferred funds into casino-designated accounts to purchase chips. After accounts were frozen, the suspects allegedly switched to using cheques, according to the reports. The group recruited casino VIP customers and people with overseas permanent residency who could enter foreigner-only casinos, the reports added. Police said casinos were used because it was difficult to make large cash withdrawals from commercial banks. Ring members allegedly placed bets on opposing outcomes in baccarat to limit gambling losses, before redeeming their remaining chips for cash. Those responsible for exchanging the funds reportedly received commissions of about 2 percent to 3 percent. Police seized approximately KRW111 million in cash, luxury goods, and about 50 mobile phones and computers. They also obtained court approval to preserve approximately KRW390 million in assets, including property, for potential confiscation. Police recommended that casino operators and South Korea’s Ministry of Culture, Sports and Tourism strengthen monitoring of high-value betting and cash withdrawals to help prevent similar activity.