https://www.donga.com/en/article/all/20260701/6289126/1
Criminal networks that laundered illicit proceeds through mule bank accounts and other methods have been broken up across South Korea, with 109 people arrested. Police said the groups washed more than 46 billion won ($33 million) in criminal proceeds. One ring funneled the money through shell companies to make it appear legitimate, while another converted cash into gift certificates before exchanging it for cryptocurrency and sending it overseas. One organization even paid its members monthly salaries of up to 10 million won.
The Cyber Investigation Division of the Seoul Metropolitan Police Agency said Tuesday it had arrested 22 people, including three alleged ringleaders, on charges of laundering about 41.5 billion won tied to voice phishing and investment scams between January and June last year. Three suspects, including the 31-year-old alleged leader, were taken into custody, while 19 others were charged without detention. They are accused of violating the Act on the Refund of Damage Caused by Telecommunications Fraud and the Act on Regulation and Punishment of Criminal Proceeds Concealment, among other offenses.
Investigators said the alleged ringleader, a former gang member based in Yeongju, North Gyeongsang Province, set up a bogus gift certificate company in October 2024 and used bank accounts opened under the company's name to receive scam proceeds, giving the money the appearance of legitimate business revenue. Although the company was properly registered, it existed only on paper and never conducted any gift certificate transactions.
To avoid raising suspicion from repeated transfers through the same network, the group changed its operation in February last year by recruiting additional members through Telegram and other platforms. It secured 67 mule bank accounts under individuals' names and routed the money through multiple accounts to obscure its path. The alleged leader kept a 2% commission and paid members monthly salaries ranging from 2.5 million won to 10 million won according to their responsibilities. Most of the recruits were in their 20s and 30s from Eumseong and Jincheon in North Chungcheong Province who knew one another through hometown connections. The group also distributed instructions on how to avoid exposing fellow members if arrested and adopted an internal rule of covering members' fines in full.
Police in Daegu also dismantled a mule account ring. The Daegu Metropolitan Police Agency arrested 38 people accused of collecting 78 mule bank accounts and selling them to criminal organizations, with 14 taken into custody. Investigators said the group laundered 3.77 billion won, including money from illegal gambling sites, and converted some of the proceeds into gift certificates as part of the operation.
In Hwaseong, Gyeonggi Province, police uncovered another ring that collected mule bank accounts under the guise of helping customers build a transaction history. Authorities arrested 28 suspects, including 15 who were taken into custody. According to the Hwaseong Dongtan Police Station, the group targeted loan applicants by claiming they could qualify for loans after building up debit card transaction records. Once the accounts were handed over, the suspects allegedly used them to siphon off 883.19 million won in phishing proceeds. Police also booked 21 people who provided their bank accounts to the group.
