Seoul targets Cambodia scam networks with unprecedented sanctions

SEOUL, Nov. 27 (UPI) -- South Korea imposed sanctions on 15 individuals and 132 entities tied to cross-border online scam and human trafficking operations in Southeast Asia, including those linked to the Prince Group in Cambodia, Seoul's Ministry of Foreign Affairs announced Thursday.

The action comes after reports of hundreds of South Koreans being trafficked, detained or forced to work in scam operations abroad and growing international concern about illegal cyber fraud networks operating across Southeast Asia.

"This measure represents South Korea's first independent sanctions against transnational crime and the largest single sanction to date," the ministry said in a statement. "It demonstrates the government's firm commitment to proactively addressing online organized crime in Southeast Asia, which is causing significant damage both domestically and internationally."

The designated entities include the Prince Group, which allegedly operates massive scam compounds in the Prince Complex and the Mango Complex in Cambodia, where numerous Korean citizens have been detained and forced to work.

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The Prince Group was sanctioned by the United States and Britain in October.

Also targeted are the Huione Group and its subsidiaries, accused of money laundering for transnational criminal organizations including the Prince Group. The U.S. Treasury Department designated Huione as a "primary money laundering concern" in May.

The sanctions list includes leaders of scam operations in Cambodia's Bohai region and a key suspect in the August torture and death of a Korean university student who was detained by a criminal organization in Cambodia.

That case sparked public outrage in South Korea and prompted Seoul to issue a "code-black" travel ban, its highest alert level, for several Cambodian regions.

Earlier this month, South Korea established a joint task force with Cambodian police exclusively dedicated to crimes involving Korean nationals. On Thursday, Seoul's National Intelligence Service announced that the task force achieved its first success with the arrest of 17 Koreans in Sihanoukville in a joint operation targeting "no-show" fraud schemes.

South Korea and China, meanwhile, signed a memorandum of understanding earlier this month to enhance cooperation against voice phishing and online fraud during talks between President Lee Jae Myung and Chinese President Xi Jinping.

Authorities believe many of the online scam operations in Southeast Asia have connections to Chinese nationals or are run by Chinese-controlled businesses.

Under Thursday's sanctions, designated individuals and entities will face asset freezes and restrictions on domestic financial transactions in South Korea. Sanctioned individuals will also be banned from entering South Korea.

"We will continue to mobilize whole-of-government cooperation and work closely with the international community to counter transnational crime, disrupt overseas criminal networks and prevent South Korea from being used as a hiding place or laundering hub for criminal proceeds," the Foreign Ministry said.