South Korean Man ‘Launched Illegal Gambling Site With Help from North Korean Hackers’
Image: Steve Barker

South Korean public prosecutors are investigating a man accused of launching illegal gambling sites with the aid of North Korean hackers.

The newspaper MBN reported that officers think the websites garnered billions of won in profits, with some of the money ending up in North Korea. One billion won is equal to around $704,00.

The newspaper quoted the Seoul Central District Prosecutors’ Office-run Public Investigation Division stating that it is currently interrogating an unnamed man in his 50s.

North Korean Hackers Sent Software to Gambling Operator

The man has been retained in custody on suspicion of violating the terms of the National Security Act.

Prosecutors think the man first established contact with North Korean hackers in 2022. They say the parties communicated via the Telegram chat app.

Shortly after, officials claim, the man launched an illegal gambling site, using servers based in China. The hackers provided him with software to help build and run the site, prosecutors say.

Police launched a probe into the sites and the suspect earlier this year. And on May 7, the Seoul Metropolitan Police Agency’s Security Investigation Unit swooped, sealing the arrest.

The prosecution plans to indict the man after investigating suspicions that he committed additional crimes.

Police Arrest ‘Proxy Gambling Live Streamer’

Meanwhile, the media outlet Newsis reported that police have arrested a live streamer who they think placed illegal bets on online slots platforms for his viewers.

Jeju, South Korea.
Jeju, South Korea. (Image: Ji Seongkwang)

The Jeju West Police Station, in the island province of Jeju, says it has handed the case over to the prosecution service.

The man (also unnamed and aged in his 40s) is suspected of gambling on behalf of viewers and exchanging virtual in-game currency for fiat.

Officers say the man and two suspected accomplice live streamers began placing bets for viewers in September 2023.

The trio used an office in Seoul as a broadcasting studio, police say, and continued offering proxy gambling and money exchange operations until officers conducted a raid in early April.

Police think the trio received several cash deposits worth 300 million won ($211,500) from their viewers, playing the machines on their behalf. If the streamers won, they would send the viewers the cash equivalent of their winnings.

The chief suspect also helped viewers buy and sell some 12.5 billion won ($8.8 million) virtual in-game currency. Officers think the chief suspect made around 3 billion won ($2.1 million) from the operation.

A screenshot released to the media by Jeju West Police Station showing slot gameplay from an illicit gambling livestream.
A screenshot released to the media by Jeju West Police Station showing slot gameplay from an illicit gambling livestream.

Manhunt Continues

Police said they arrested the man at an address in Seoul on April 9. Investigators added that they were also trying to track down more broadcast jockeys (live streamers) who they suspect of facilitating proxy gambling.

Officers are also trying to find some of the “high-stakes gamblers” who use broadcast jockeys to place bets on their behalf.

A spokesperson for the Jeju West Police Station said that the popularity of proxy betting games was on the rise in the province. The official added the force would “focus on cutting off criminal activity and illegal gambling at the source.”

Earlier this year, officers in Seoul arrested 37 people in a raid on a suspected illegal casino operating hub housed in a furniture store.

The country’s National Police Agency has also announced the launch of a third annual crackdown on hold ‘em pubs nationwide.

Thousands of hold ‘em pubs operate in the country, offering patrons casino-like experiences without supposedly allowing “real-money” betting.

Previous hold ‘em crackdowns have seen investigators charge 4,843 people with gambling or running illegal gambling establishments.

Tim Alper
Tim Alper

Tim is a journalist, author, and columnist with two decades of experience writing for outlets like the BBC, the Guardian, and Chosun Ilbo. He is an expert on regulation, business, and industry...