Phone scam syndicate busted in Korea, 184 arrested

South Korean police have dismantled a large criminal syndicate that lured financially vulnerable individuals into fraudulent mobile phone installment schemes and used the devices as burner phones in overseas crimes.

The Seoul Metropolitan Police Agency’s criminal unit announced Tuesday that 184 suspects have been arrested, including three ringleaders behind two major fraud operations. They face charges under the Act on the Aggravated Punishment of Specific Economic Crimes, including fraud and forming a criminal organization.

The scam ran from September 2019 to July 2024 and involved 53 illegal lending operations and 12 telemarketing offices in Gumi and Daejeon. The suspects posed as online lenders, targeting people desperate for quick cash. Victims were pressured into purchasing premium smartphones on two- to three-year installment plans for 1.6 to 2.1 million won, receiving only 600,000 to 800,000 won in cash, which is less than half the value.

Among the 1,057 confirmed victims, 813 (about 77%) were people in their 20s and 30s. Many were left unable to access financial services or were listed as loan defaulters.

A total of 1,486 phones were handed over to illegal brokers, who distributed them overseas. Authorities found some devices and USIM chips were used in voice phishing and online gambling operations, causing estimated damages of 7.7 billion won.

Police said the syndicate amassed 9.4 billion won in illegal profits, of which 1.62 billion won has been confiscated. The remainder is being traced, and the case has been forwarded to tax authorities for further investigation.

Police plan to widen the probe to identify other criminal groups involved in purchasing and exporting the phones.


천종현 기자 punch@donga.com