16 billion won gold bar and cash scam targeting elderly arrested; multinational money laundering organization busted

Authorities have apprehended a transnational money laundering organization that targeted elderly individuals in a sophisticated scam, defrauding them of approximately 16 billion won (about $11.7 million) in gold bars and cash. The Gyeonggi Nambu Provincial Police Agency arrested 17 key members, including a 40-year-old Korean national identified as the ringleader for domestic operations, and have sent 15 of them to prosecutors. The police are considering charging the group with organized crime.

The organization operated from January, creating fake applications for foreign investment firms and advertising through YouTube and TikTok. They lured 83 victims, predominantly individuals aged 60 and above, who were struggling with post-retirement asset management. The scammers exploited the victims' psychological vulnerabilities and unfamiliarity with digital devices, convincing them to install the fake apps. Victims were shown manipulated profit graphs, creating an illusion of successful investments, while their funds were directly siphoned off by the organization.

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With the support of the municipal police, we have been vaccinating stray dogs and capturing them to send to the hostel.

One 70-year-old victim, initially investing several million won via bank transfer after seeing a YouTube advertisement, was deceived by the fabricated profit increases on the app. This victim subsequently handed over gold bars worth approximately 4.9 billion won (about $3.6 million) to the scammers. The organization was structured as a multinational division of labor, with most members hailing from six to seven countries in Southeast and Central Asia, excluding two Koreans who served as the domestic leader and an assistant.

To maintain security and prevent defections, the organization confiscated members' passports upon entry and returned them only upon departure. Police initiated the investigation in late February following a report from a victim whose gold bars were stolen. They first apprehended a money collector and subsequently expanded the investigation to the higher-ranking members, eventually arresting the domestic leader. While police recovered about 550 million won (about $400,000) in cash and gold bars, a significant portion of the illicit proceeds has already been transferred overseas. Police have issued arrest warrants for six fugitives abroad and requested Interpol red notices, while continuing to track down other involved individuals.

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The dog hostel is a model programme. The municipality itself will regularly manage food for the dogs kept in the hostel.