Police Raid Travel Agency Suspected of 'Fraud' in Operating COVID-19 Quarantine Facilities

Fraud Charges Under the Special Act
225 Related Contracts and Approximately 120 Billion KRW

Seoul Metropolitan Police Agency file photo / Photo by Moon Honam munonam@

[Asia Economy Reporter Oh Gyumin] The police are conducting a search and seizure operation targeting the chairman of a travel industry association and his companies, who are suspected of embezzling hundreds of millions of won through private contracts with local governments during the COVID-19 period.

The Seoul Metropolitan Police Agency's Violent Crime Investigation Unit began the search and seizure at 11:40 a.m. on the 17th against Oh Changhee, chairman of the Korea Travel Industry Association, who is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), as well as Sebang Travel and Sebang S&C, operated by Oh's younger brother.

These companies are suspected of embezzling workers' wages and quarantine supplies while managing the Yeongdeungpo-gu Residential Treatment Center from January to May. It is reported that they embezzled more than 4.5 million won per person by overcharging labor costs while operating the quarantine facility. There are also indications that quarantine supplies funded by the national treasury were diverted to other events contracted by the companies.

Since 2020, these companies have signed 225 contracts nationwide related to the operation of residential treatment centers and other services, with the total contract amount reportedly reaching approximately 120 billion won.

The police stated that after analyzing the seized materials, they plan to summon related company officials and emphasized, "We will conduct a strict and swift investigation into this case."

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