Korean police uncover $4m ‘illegal gambling’ operation

Authorities in South Korea have arrested two key figures in an alleged $4m illegal online gambling operation.

Updated on 22 March 2016

Journalist

The National Police Agency have arrested the website’s CEO and call centre manager, according to local media source the Korea JoongAng Daily.

The website, which the police say ran for a year-and-a-half, allowed members to bet on potential movement of the KOPSI (Korea Composite Stock Price).

The total amount exchanged on the website is reported at 14.5bn won, with the operation generating 4.6bn for those behind it – equivalent to $4m.

According to the police investigation, the CEO launched the site from his home in October 2014, even conducting financial and stock transactions.

Site managers are also said to have blocked successful customers.

At the peak of the operation high-level staff were earning 100m won per month, with lower-ranking employees receiving around 4.5m won a month.

Police were alerted to the website when an employee began sending texts and emails to its members, pretending to be the cyber bureau of the National Police Agency.

Those receiving the messages contacted the bureau’s IT financial crimes investigation team, which led to the two arrests.

Topics

Stay updated with GI

Follow Gambling Insider for independent news, analysis and industry expertise.

Add as a preferred source on Google

Gareth Bracken

Journalist

Gareth Bracken is an experienced gaming journalist and editor who spent more than six years with Players Publishing, progressing through a range of senior editorial roles across its flagship titles, including Gambling Insider. He joined the company in 2010 as an Editorial Assistant before advancing to Staff Writer, Senior Staff Writer, Editor, and later Senior Features Writer.

Between 2011 and 2016, Gareth played a central role in shaping editorial output across print and digital platforms, producing in-depth features, news coverage and long-form analysis on the global gambling and iGaming industries. As Editor from September 2014 to October 2015, he oversaw content strategy, editorial standards and production workflows, helping guide the publication’s development as a leading B2B industry voice.

Visit Profile

Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.