"Luring with '10 Million Won per Month in Laos' to Coerce Participation in 20 Billion Won Investment Fraud"

Korean Counselor Illegally Detained in Golden Triangle
Master Sentenced to 8 Years, Team Leader to 5 Years in Prison

A group that established bases in Myanmar's Golden Triangle region and illegally detained Korean counselors recruited under the pretext of high-income employment, committing an investment fraud worth around 20 billion won, was sentenced to multiple prison terms.

On the 16th, the Criminal Division 11 of Daegu District Court (Presiding Judge Lee Jong-gil) sentenced A (39), the mastermind of the criminal organization, to 8 years in prison on charges including violation of the Act on the Punishment of Violent Acts, etc. (joint coercion), organization, membership, and activities of a criminal group, and violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud). B (26), the general team leader, was sentenced to 5 years in prison, and three others including C (42), who was in charge of recruiting and managing counselors, were each sentenced to 4 years in prison, according to a report by Yonhap News on the same day. Additionally, the court sentenced D (28) and two others, who acted as investment fraud counselors, to 2 to 3 years in prison, and the remaining 10 members who served as team leaders and counselors to 2 years and 6 months in prison with 4 years of probation.

The mastermind A conspired with individuals of Korean-Chinese descent and others to commit online stock and cryptocurrency investment fraud targeting Koreans. From May to October last year, they prepared offices and accommodations for their members in two locations within the Golden Triangle area, a mountainous border region along the Mekong River where Myanmar, Laos, and Thailand meet, including Tachileik in Myanmar. Afterwards, A recruited counselors to be involved in the fraud through C, who was in charge of recruiting and managing counselors, and smuggled them into the country from Korea.

These individuals, from Daegu and Changwon in Gyeongnam, were deceived by false claims from C and others that "if you only know how to type in Korean, you can earn more than 10 million won per month in Laos" and arrived in Thailand. Following instructions from A and others, they changed cars several times and moved to the northern border area of Thailand. They then crossed a river about 7 to 8 meters wide by tube and infiltrated into Myanmar territory. They were confined in offices and accommodations guarded by armed security personnel and subjected to threats such as "If you create unnecessary situations, we will use electric torture," while being forced to participate in the fraud. The areas like Tachileik where they were detained are known to be unstable in terms of security and are reportedly used as bases for illegal activities such as online fraud, voice phishing, and human trafficking.

A and his group distributed fake bank accounts, burner phones, and illegally obtained personal information databases (DBs) to the members brought from Korea and engaged in fraud targeting Koreans. Using burner phone accounts, they joined social networking services (SNS) such as KakaoTalk and Facebook, sent friend requests to unspecified many people, and built rapport through online conversations with victims who contacted them. They deceived victims by claiming that investing in stocks and cryptocurrencies would yield large profits and received cash transfers through fake investment websites and fake bank accounts they had already created.

Their crimes were uncovered in October last year when local police rescued illegally detained Koreans at the request of the Korean Embassy in Myanmar. The damage caused by A’s organization was investigated to exceed 23 billion won, with 60 victims confirmed so far and the confirmed damage amount reaching about 4.3 billion won.

The court pointed out, "This crime caused enormous damage in a short period, while actual recovery is difficult, resulting in significant social harm." Regarding the sentencing, the court explained, "We considered that the victims are suffering severe economic hardship and have petitioned for severe punishment of the defendants."