Authorities in South Korea are going after payment providers that are allowing for gambling transactions in the country. The investigation is being launched by the Financial Supervisory Service (FSS), South Korea’s financial oversight body, which has dubbed the activity as being run by “criminal organizations”.
Most payment processors won’t be aware of this type of transaction, but the regulatory group is now taking a step in the process rather than the source. Speaking in a statement, as reported by Gambling News, the FSS said:
“Illegal gambling has evolved into a sophisticated digital operation. We will strengthen cooperation with prosecutors and push for legislative changes to close regulatory gaps exploited by these platforms.”
Reasonings given behind the probe point to past examples of payment providers allowing for criminal activity to happen under their watch. Examples given include a fraudulent e-commerce site that provided sports betting under the hood.
Gambling is mostly illegal in South Korea, as with Japan and China, but does allow for gambling in specific locations and restricted sports gambling, as well as the lottery.
South Korea fends off illegal gambling
In recent months, South Korea and other territories in the vicinity have seemingly struggled with keeping on top of illegal gambling. We’ve reported on multiple instances of the country either investigating or charging people in 2025. In April, Busan police arrested a person who was running a gambling ring worth 800 billion won ($557.3 million).
May saw South Korea investigate a gambling website because of ties to North Korea, where gambling is (obviously) also illegal. In June, Korean police busted another gambling ring that had managed to acquire $18.2 million in wagers.
Celebrities have also been caught out, with a comedian facing prosecution after managing to spend nearly $2 million on the illicit act.
One of the only locations in South Korea that allows locals to gamble, Kangwon Land, has had to come forward to warn citizens about potential casino scams. Reported in June, the casino found that it was being impersonated online and has tried to curb potential victims from falling for the scam.
