Gang Arrested for Laundering 1 Trillion Won in Criminal Proceeds Using Ghost Corporation Bank Accounts

Leasing of Proxy Bank Accounts to Voice Phishing and Cyber Gambling Organizations
Charging 2 to 3 Million Won Monthly for Account Usage Fees

A group that lent ghost corporation bank accounts to criminal organizations and pocketed tens of billions of won in fees was arrested in large numbers.

The Jeonnam Provincial Police Agency's Anti-Corruption and Economic Crime Investigation Unit 1 announced on the 2nd that they arrested eighteen members of an organization that laundered criminal proceeds worth 1 trillion won on charges including organizing a criminal group and violating the Electronic Financial Transactions Act, detaining fourteen including the ringleader Mr. A and booking four without detention.

From February 2020 until last month, Mr. A and others established sixty-two "ghost corporations" that existed only on paper and opened 117 bank accounts under false names. They lent these accounts to criminal organizations such as voice phishing and cyber gambling groups for monthly fees ranging from 2 million to 3 million won. The criminal proceeds circulated through these bank accounts are estimated to be worth around 1 trillion won. Mr. A and others also collected money laundering fees, which were estimated to be about 2 billion won.

Cash, mobile phones, bankbooks, OTPs, and other items seized by the Jeonnam Provincial Police Agency from an organization renting out ghost accounts
[Photo by Yonhap News]

The police applied charges of organizing a criminal group to those who divided roles such as ringleader, account recruiters, account managers, and withdrawal agents. The members received support for offices and operating expenses necessary for the crimes from the ringleader. They paid particular attention to security by using messenger programs with servers overseas and mobile phones registered under other people's names. When recruiting members, they only brought in siblings or acquaintances of existing members. They used aliases, rented offices short-term, and frequently moved to maintain caution.

In March, when four lower-level members were caught by the police, they disguised two middlemen to surrender voluntarily to prevent the investigation from expanding. The police conducted a tracking investigation, arresting all members including the ringleader, and secured evidence such as bank accounts and one-time password generators (OTP).

The police are also investigating fifty people who lent their names for bank accounts to the rental organization for 500,000 won per month on charges of violating the Electronic Financial Transactions Act. A Jeonnam Provincial Police Agency official stated, "Lending names necessary for establishing ghost corporations and opening bank accounts under false names is also subject to criminal punishment," and added, "We plan to expand the investigation to include notaries and others involved in establishing ghost corporations."

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