Korean police uncover $4m 'illegal gambling' operation

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

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.