Police in Gwangju referred 19 people to prosecutors after uncovering two organisations accused of laundering proceeds from illegal gambling sites through a network of bank accounts. The alleged scheme moved KRW506.2 billion, about US$365 million, over roughly a year from July 2025.
FocusGN reported that, according to the Gwangju Metropolitan Police Agency, 12 suspects were detained and seven others were referred without detention. The organisations are said to have used 107 burner accounts, while ringleaders negotiated laundering fees with illegal gambling operators.
Managers controlled the bank accounts, and other members handled deposits, transfers and cash withdrawals. The groups exchanged instructions through Telegram, used aliases and often did not know one another’s identities.
The laundering was split between a Daegu-based group and a Busan-based organisation. The Daegu-based group allegedly handled KRW482.8 billion through 62 accounts, while the Busan-based organisation allegedly handled KRW23.4 billion through 45 accounts.
Some 160 account holders were also referred over allegations that they handed over bankbooks or cheque cards in exchange for money. Before the arrests and referrals, police analysed around 300 financial accounts, mobile phones and Telegram conversations, then carried out 20 search-and-seizure operations across the country. Officers seized KRW243 million in cash, two luxury watches and designer clothing, and sought to preserve about KRW2.595 billion in assets belonging to eight suspects.
