South Korean police refer 54 suspects in KRW28.7bn casino money‑laundering case

South Korean police referred 54 suspects to prosecutors for alleged laundering of KRW28,700,000,000 (US$21.4 million) tied to an investment fraud, after an investigation that pointed to operations at several casinos, including Kangwon Land. Authorities said on 17 October 2026 that 14 of the suspects remain in custody, including the alleged ringleader, and investigators traced funds affecting 555 victims.

Investigation and referrals: how investigators reached 54 suspects

The Busan Metropolitan Police Agency announced on Thursday that it had referred 54 cases to prosecutors. In addition, prosecutors received complaints related to another 40 suspects who were not detained by police. Reports citing Yonhap News Agency say the laundering scheme began in October 2025 and was linked to an investment fraud organisation operating a fake website that promised high returns.

Police described the process as follows: the fraud organisation collected victims' funds through the fake platform; the alleged launderers chose casinos to convert those funds into cash because commercial banks made large cash withdrawals difficult.

Mechanism of money laundering in casinos

Investigators detailed the method used inside gaming venues. The suspects recruited casino VIP patrons and foreign permanent residents who could access areas and products reserved for non‑locals. The process included several concrete steps:

1. Purchasing chips through accounts designated by the casino.

2. When those accounts were frozen by authorities, the participants turned to using cheques to continue transactions.

3. At baccarat tables they bet on opposing outcomes to limit losses and then exchanged the remaining chips for cash.

The network paid commissions to those who managed exchanges, around 2%–3%.

Seizures and precautionary measures taken by police

During the operation police seized approximately KRW111 million in cash, luxury goods and about 50 phones and computers. They also obtained a court order to preserve roughly KRW390 million in assets, including real estate, pending possible later confiscation.

Authorities urged casino operators and the Ministry of Culture, Sports and Tourism to tighten controls on high‑value bets and cash withdrawals. The recommendation seeks to close the vectors that facilitated the conversion of illicit funds into apparently legitimate assets.

Implications for operators and compliance in casinos

The investigation highlights specific risks tied to managing VIP customers and structures that allow non‑residents to access reserved products. For casino operators this means reviewing monitoring procedures for deposits and withdrawals, controls over designated accounts and traceability of chip redemptions. Operators and service providers will monitor the case closely for potential regulatory guidance and should review internal controls in line with [compliance best practice](/b2b).

Police measures also emphasise the need for coordination between law enforcement and regulators to preserve financial evidence and obtain precautionary orders on assets. The case shows the full chain: collection through investment fraud, conversion in casinos and final extraction of funds.

What remains pending in the investigation

Prosecutors must now formalise charges and decide on additional measures against the 54 suspects referred by police. Criminal responsibility and any effective confiscation of the assets preserved under court order remain to be determined. The investigation is ongoing while authorities continue to analyse seized devices and documentation.

"The evidence points to an organised system that exploited the casino structure and the mobility of certain customers to launder large sums," police said in their statement, according to Yonhap News Agency.

The case increases pressure on the sector to improve controls and transparency and on the regulatory framework to prevent investment frauds from becoming illicit capital flows through gaming establishments. Casino operators and [compliance](/b2b) providers will watch prosecutors' decisions and any regulatory recommendations that emerge closely.