Korean and Chinese nationals arrested for Jeju casino scheme
Staff Reporter 2015-10-16 18:06
A casino on South Korea's Jeju Island. (Internet photo)
Chinese police arrested 13 South Korean and 34 Chinese nationals for luring gamblers to come to South Korea with offers of free tours, free hotels and sexual services, reports China's state broadcaster CCTV.
The country's Ministry of Public Security launched the operation in June, saying South Korean casino managers were accessing China to lure local punters to travel to Jeju island and made illegal earnings in the billions of US dollars.
A deal offered by one casino gave Chinese clients a one-time free massage when they exchanged 100,000 yuan (US$16,000) in chips, a massage from a minor celebrity or model if they bought 200,000 yuan (US$32,000) in chips or three days of such services with every 500,000 yuan (US$80,000) purchase.
The casinos also offered Chinese clients a 1.6% kickback if they introduced other gamblers; the more money these referred customers lost gambling, the more money the individuals who introduced them would get. These individuals were also made regional representatives in China to recruit new gamblers.
The police said a travel agency in Beijing played a key role in helping the casinos transfer the money. This agency first received the money from local gamblers and transferred it to a legitimate bank account within China. The money would later be transferred to an underground bank account before it was divided and transferred to an underground bank in South Korea.
Beijing police detained four South Korean casino managers in 2013 and some casinos in Jeju were forced to closed because of a decline in Chinese clients.
An official from the Chinese consulate-general in Jeju said waves of Chinese tourists started to come to the island after Seoul waived certain visa requirements.
The Jeju casinos have reportedly taken a hit after police busted their Chinese agents and froze their bank accounts in June.
