"Cash Offered for Activating Phones"... Police Refer Large Group Involved in Burner Phone Distribution

A group involved in distributing burner phones through a method known as "mobile phone kkang," which involves purchasing newly activated phones, has been referred to the prosecution in large numbers.

On July 30, the Seoul Metropolitan Police Agency's Criminal Investigation Unit announced that it had referred a total of 184 individuals, including the ringleader of a burner phone distribution organization, to the prosecution on charges such as fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and organizing and participating in a criminal group. Among them, three individuals, including the ringleader and key managers, were referred while under arrest.

The police confiscated 1.62 billion won out of the group's total criminal proceeds of 2.6 billion won.

According to the police, from September 2019 to July of last year, the group allegedly had 1,057 people in urgent need of cash activate a total of 1,486 mobile phones, purchased them at low prices, and then distributed them illegally.

It is reported that the group posted loan advertisements through 53 registered lending companies in areas such as Gumi, North Gyeongsang Province, and Daejeon, and then told loan applicants, "General loans are difficult to obtain, but if you activate a mobile phone, we will purchase it and provide you with funds," thereby securing burner phones.

Investigations found that when loan applicants activated high-end mobile phones costing between 1.6 million and 2.1 million won on two- to three-year contracts, the group purchased the devices for 600,000 to 800,000 won each.

A police official stated, "Mobile phone kkang exploits the desperate circumstances of low-credit individuals, and since loan applicants must still pay installment fees and communication charges, their situations become even worse. Furthermore, these illegally distributed burner phones are often used in crimes such as voice phishing. We will expand investigations into burner phone distribution crimes."