South Korea Launches Seven-Month Crackdown on Investment Fraud and Cybercrime

South Korean authorities have launched a targeted enforcement campaign against financial crime and cyber fraud, as cases linked to investment scams and overseas syndicates continue to rise.

The operation, led by the Korean National Police Agency’s National Office of Investigation, will run from March 23 to October 31, focusing on crimes that directly impact retail investors and public finances.

Key targets include illegal investment firms, unfair trading practices, multi-level marketing fraud, illegal private lending, and virtual asset scams. Cyber-enabled fraud will also be addressed, covering direct transaction scams, fake shopping platforms, gaming fraud, and email-based trade schemes.

Authorities highlighted a recent case involving a Cambodia-based criminal group that used the secondhand marketplace “Jungonara” to defraud approximately 1,400 victims of 6.7 billion won, illustrating how overseas syndicates are expanding into domestic online platforms.

Police said many fraud networks now operate from overseas bases or relocate after committing crimes, while maintaining structured roles across targeting, fund collection, and laundering. To counter this, investigators will pursue consolidated investigations into cases using similar methods, with the aim of identifying entire organisations rather than isolated actors. The scope will also include money laundering activities and supporting infrastructure.

The campaign will further target fraud-enabling tools, including the creation and distribution of burner phones, fraudulent bank accounts, fake investment websites, and illegal online advertisements used to attract victims.

“Recent crimes have become increasingly sophisticated, deceiving the public with elaborate scenarios that exploit economic conditions,” said Park Sungju, head of the National Office of Investigation. “The police will relentlessly pursue financial crimes and cyber fraud that threaten the public, ensure the perpetrators are apprehended, and thoroughly recover any criminal proceeds.”

Authorities said the crackdown will prioritise network disruption, arrests, and asset recovery, as financial scams continue to scale in complexity and cross-border reach.