Daejeon Police Arrest Former Insurance Employee for Leading Staged Traffic Accident Insurance Fraud Ring

Approximately 300 Million Won in Insurance Payouts Fraudulently Obtained Through Five Staged Accidents

The Daejeon Metropolitan Police Agency has apprehended a group of eight individuals, including a former insurance company employee identified as Mr. A (male, in his 40s), for defrauding insurance companies of approximately 300 million won by staging five traffic accidents involving high-end imported vehicles.

Mr. A is accused of leveraging his experience in insurance claims and automobile repair to purchase high-end imported vehicles that had been declared total losses at auction, partially repairing only the exterior, and then moving them onto public roads. He allegedly conspired with accomplices to intentionally cause traffic accidents, have the vehicles declared total losses again, and collect cash payouts. This scheme was carried out five times between September 2019 and May 2024, resulting in the fraudulent acquisition of approximately 300 million won in insurance payouts.

During this process, Mr. A recruited accomplices through a business he operated and, in order to avoid arousing suspicion from insurance companies, committed the crimes over an extended period while moving between Gyeonggi Province, Daejeon, and South Chungcheong Province.

A representative of the Daejeon Metropolitan Police Agency stated, "To prevent innocent citizens from suffering losses due to insurance fraud, we will continue to actively respond to cases of insurance fraud in the future."