Experts warn of crime-linked funds at casinos

Crime-linked illicit funds are increasingly flowing into South Korean casinos. Organized crime groups had previously relied on cryptocurrencies to launder illegal profits. However, as law enforcement agencies have strengthened their ability to track digital transactions, criminals are turning back to casinos as a preferred laundering channel.

Money-laundering operators contacted by The Dong-A Ilbo said casino junkets catering to high-rolling VIP clients are safer than cryptocurrencies. They said the schemes allow cash to be converted into what they described as clean money in exchange for a fee. Those fees can reach as high as 40 percent, effectively serving as payment to erase criminal traces and avoid scrutiny by investigators.

The spread of these laundering practices has heightened concerns that South Korea may no longer be immune to illicit financial flows. Recent arrests of Chinese nationals who laundered voice phishing proceeds through domestic casinos in Jeju and other regions revealed how local casinos are increasingly being used as conduits for criminal funds.

The problem is compounded by weak enforcement. In 2024, illegal currency exchanges conducted by domestic casinos totaled 419.6 billion won. Yet the fines imposed amounted to only about 0.1 percent of the violations. Experts say sweeping reforms are urgently needed, including a progressive penalty system tied to the scale of violations and the deployment of specialized personnel to strengthen anti-money-laundering inspections.


이수연 lotus@donga.com