Korean Police Bust Illegal Gambling Ring and Arrest 7 Suspects

The Incheon Metropolitan Police Agency in Korea has announced the arrest of seven individuals accused of running a large-scale illegal gambling operation. The group allegedly used a counterfeit home trading system (HTS) to imitate overseas futures trading.

South Korean Police Arrest Suspected Creators of Illegal Gambling Ring

According to authorities, the suspects include a man in his 40s, identified as Mr. A, who created the fake HTS program, and a man in his 30s, whom the police call Mr. B, who oversaw the main gambling operation. Both individuals have been charged under the Capital Markets Act for running an unauthorized investment market and operating an illegal gambling site.

Investigators reported that Mr. B’s network distributed the program to 20 local partners across the country, generating an estimated KRW 27 billion (approximately $19.6 million) through bets tied to overseas indices such as the Nasdaq and Hang Seng. Participants were required to deposit at least KRW 300,000 ($220) and place wagers of up to KRW 400 million (around $290,000) each. The site’s operators allegedly expelled some players who earned profits to avoid large payouts.

Authorities seized KRW 200 million (roughly $145,000) in cash and several luxury watches from Mr. B’s residence. They also issued preservation orders on KRW 1.9 billion (about $1.4 million) worth of assets, including real estate and vehicles. In addition, police are seeking the confiscation of KRW 1.2 billion ($870,000) from Mr. A’s software company.

In addition, 138 individuals were booked without detention, including 23 site operators and 115 gambling participants. Mr. A is accused of selling the fake HTS to Mr. B’s group for a profit of approximately KRW 3.4 billion (about $2.5 million) and collecting monthly usage fees ranging from KRW 5 million to KRW 7 million (roughly $3,600 to $5,100).

A police spokesperson stated that investigations into illegal platforms masquerading as legitimate investment services are ongoing and urged the public to stay vigilant against fraudulent schemes circulating through phone calls and social media.

What’s the State of gambling in South Korea?

Gambling regulations vary widely across Asia, and South Korea is among the countries that permit certain forms of gambling but under strict oversight. Despite these restrictions, the country’s gambling scene is growing as new trends emerge.

Although South Koreans cannot legally access local casinos, many turn to offshore online casino sites. At the same time, they continue to participate in activities that are legally permitted, such as sports betting and playing the lottery. However, as we have already explored, there’s also an illegal underground gambling scene. The case we’ve reported in this article isn’t the only recent one, as last month, South Korean police dismantled an illicit online gambling operation that targeted students and sailors.