S. Korea launches tax probe into local office linked to Cambodian scam ring
Yonhap reported on Monday (November 3) that South Korea’s tax authorities have launched an investigation into a domestic office of the Cambodia-based Prince Group, which is now suspected of operating an international scam network.
The National Tax Service (NTS) began the investigation into the office, located in central Seoul, following a government-wide review of South Korean nationals allegedly involved in online fraud schemes run by criminal organisations, including the Prince Group. The group has faced international sanctions due to its involvement in crimes such as kidnapping, torture, and murder.
According to the NTS, the group allegedly set up fake overseas real estate consulting businesses in prominent commercial areas of Seoul, hiring local staff and presenting these offices as mere liaison points.
The group is suspected of raising tens of millions, possibly hundreds of millions, of South Korean won from domestic investors for real estate projects, which were then transferred to affiliated companies in Cambodia.
"We have not been able to verify if the domestic investors actually acquired the properties," said Ahn Deok-soo, an NTS official, during a press briefing. He also mentioned that the group is suspected of laundering proceeds from phishing crimes by disguising them as overseas real estate investments.
In October, 64 South Koreans detained in Cambodia for alleged involvement in online scams were repatriated on a chartered flight. Most of them now face criminal investigations in South Korea.
The repatriation followed the death of a South Korean college student in Cambodia, reportedly tortured by a criminal ring, which sparked public outrage.
