Korean court penalises five over illegal scam website as gambling remains outlawed

March 4, 2025

Korean court penalises five over illegal scam website as gambling remains outlawed

A South Korean court has sentenced five individuals for operating an illegal online gambling website that generated nearly 91 billion won (€58.7 million). The Suwon District Court handed down severe punishments, as per local media.

Reportedly, the court sentenced the primary defendant, identified only as Lee, a man in his 30s, to two years and six months in prison. He was also ordered to forfeit 200 million won (€136K) . Four of his accomplices received prison terms ranging from one year to two years and two months.

The court condemned the group’s actions, stating that their involvement in illegal gambling posed a serious social threat by undermining workplace ethics and contributing to gambling addiction. It ruled that their deep involvement in running and maintaining the gambling network made strict legal action unavoidable.

According to prosecutors, the illegal gambling website was operational between January 2020 and April 2024. The group set up offices in multiple locations across Gyeonggi Province, including Suwon, Ansan, and Guri. The operation involved managing financial transactions, supervising employees, and overseeing customer service.

Fraud cash turned into digital tokens

The site employed a system in which users converted their deposits into virtual tokens, which were then used for betting. This method allowed the operation to function as a large-scale online gambling platform, despite being illicit under South Korean law.

Authorities revealed that Lee and his associates were responsible for revenue distribution, obtaining burner bank accounts, and acquiring mobile phones essential for the operation. The prosecution argued that their actions sustained a vast underground gambling network.

During the trial, Lee attempted to downplay his role, claiming he was merely an employee rather than an operator of the site. However, the court found that he played a crucial role in maintaining the financial flow of the gambling enterprise, making him a key figure in the operation.

The sentencing took into account the defendants’ admissions of guilt and expressions of remorse. Despite this, the court imposed significant penalties to reflect the severity of the offences and deter similar crimes in the future.

South Korea keeps gambling outlawed

For the unaware, Seoul has intensified efforts to clamp down on illicit gambling operations, which are often linked to organised crime and financial fraud. South Korean law enforcement agencies continue to monitor and dismantle illegal gambling networks, viewing them as a major threat to social stability.

Gambling addiction is a growing concern in South Korea, with illegal online platforms often exacerbating the problem. While gambling facilities, such as casinos, exist in South Korea, they are primarily open to foreign tourists, with locals barred from participation except at the Kangwon Land Casino, a government-sanctioned venue in a remote area.

Due to these restrictions, South Koreans have very few legal avenues for gambling, leading some to seek underground or online alternatives.