South Korean authorities have arrested ten people and dismantled an illegal gambling syndicate based in Cambodia. Seven of them, including the organizer, identified only as “A,” have been charged with violating South Korea’s National Sports Promotion Act.
According to investigators, the men operated an illegal gambling website between February 2022 and July 2023, processing transactions totaling KRW 44 billion (£23.4m).
Online gambling is prohibited in South Korea, yet the site reportedly had more than 11,000 users. During the raid, authorities seized KRW 270 million (£143,437) and froze assets worth KRW 120 million (£63,749).
The recent arrests have highlighted the urgent need for the South Korean government to address challenges facing the country’s gambling industry. Experts are calling for the creation of a new task force to focus on monitoring the gambling activity of South Korean citizens abroad.
Currently, South Koreans are permitted to gamble only at a limited number of government-approved venues, such as a horse racing track in Seoul or Kangwon Land – the only casino open to locals. The country’s 17 other casinos are reserved exclusively for foreign tourists. These restrictions also apply to South Korean citizens outside the country, even where gambling is legal under local laws. Violations can result in fines or imprisonment.
However, according to data from the National Gambling Control Commission, the total value of overseas gambling by South Koreans reached KRW 4.9 trillion (£2.7bn) in 2017, most of it wagered in Asian gambling hubs such as Macau and the Philippines.
These recommendations were raised at a forum organized by The Korea Times and the Tourism Sciences Society of Korea (TOSOK), where experts urged the government to reassess its approach to gambling among South Korean citizens.
Lee Jae-seok, a professor at Gangneung-Wonju National University, told attendees at the conference: “While Macau and the Philippines remain key destinations for those who engage in overseas gambling, the market is expanding to neighbouring countries such as Laos, Cambodia and Vietnam and also quickly evolving online.
“That’s why we need a permanent regulatory body to comprehensively monitor international gambling activities in the whole ASEAN market.”
Fears are also rising in the country over the impact of MGM Osaka, Japan’s first integrated resort which is set to welcome players in 2030.
Industry leaders in South Korea have warned that the country’s current regulatory framework will diminish the competitiveness of its casino and tourism sectors.
“Osaka’s integrated resort is geographically close and poses a serious competitive challenge for our industry,” said Choi Chul-kyu, acting Chief Executive of Kangwon Land, the country’s only casino open to Korean nationals.
Chul-kyu was speaking at an event hosted by the Korea Casino Integrate Resort Association and the Korea Tourism Society in Osaka, which brought together officials and experts to assess the impact of Japan’s new project.
Once the Osaka resort opens, reports suggest that approximately 7.6 million South Koreans could travel there annually, spending an estimated 2.6trn won (£1.4bn).
Experts at the gathering called on the South Korean Government to recognise the importance of integrated resorts for boosting tourism to the country and bring its regulatory framework in line with other international markets.
“For Korea’s casino and tourism industries to take off, we need new policies that go beyond the current framework,” said Suh Won-seok, president of the Korea Tourism Society.
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