Financial Supervisory Service Launches Investigation into Hole-in-One Insurance Fraud... Estimated Embezzlement Amount 1 Billion KRW

Amateur Golfer Hole-in-One Probability 0.008%
168 Suspected of Fraudulent Insurance Claims

[Image source=Pixabay]

[Asia Economy Reporter Choi Taewon] The Financial Supervisory Service (FSS) has launched an investigation into suspects accused of hole-in-one insurance fraud, including cases where insurance claims were made after recording two hole-in-ones within six days. The estimated amount of fraudulently obtained funds is around 1 billion KRW.

On the 27th, the FSS stated, "We have identified multiple cases suspected of insurance fraud, such as achieving multiple hole-in-ones in a short period or submitting false receipts."

Hole-in-one insurance is a product that compensates amateur golfers for actual expenses incurred for celebratory dinners, gift purchases, and congratulatory rounds when they achieve a hole-in-one at a golf course. A hole-in-one means sinking the golf ball into the hole with a single shot. The typical success rate for amateur golfers is only 0.008%.

Mr. A succeeded in making two hole-in-ones within six days and received insurance payouts. After receiving insurance money for the first hole-in-one, he signed up for a new hole-in-one insurance policy five days later, and coincidentally made another hole-in-one the next day.

Mr. B and Mr. C, who signed hole-in-one insurance contracts through the same agent, also submitted receipts showing payments of over 2 million KRW at the same restaurant after recording their hole-in-ones and received insurance payouts.

The FSS estimates that there are as many as 168 suspects who fraudulently received hole-in-one insurance payouts. Those with excessive numbers of hole-in-ones and insurance claim amounts were selected for investigation.

The FSS has referred those suspected of submitting false expense claims to the National Police Agency’s National Investigation Headquarters (NIH), which is conducting a special crackdown on insurance fraud.

The NIH has instructed each provincial police agency to conduct preliminary investigations or full investigations into suspected hole-in-one insurance fraud cases. The investigation results will be shared with the FSS.

The National Police Agency explained, "Acts such as submitting falsified hole-in-one certificates obtained in collusion with caddies or others to insurance companies, or claiming expenses that were not actually incurred, constitute insurance fraud and should be carefully avoided."

This content was produced with the assistance of AI translation services.