The headquarters of Prince Group is seen in Phnom Penh, Cambodia, Sunday. Korea is poised to impose financial sanctions on Cambodia-based crime networks linked to large-scale human trafficking and scam operations. Yonhap
Gov’t weighs asset freezes for Prince Group, Huione Group over human trafficking
Korea is poised to impose financial sanctions on businesses associated with Cambodia-based crime networks that run large-scale human trafficking and scam operations, in response to a surge in kidnappings of Korean citizens in the Southeast Asian country.
Confirmation of the move is expected to be announced later this month, and would mark Seoul’s most decisive action yet, addressing criticism that the government has been slow to act.
According to financial authorities on Sunday, the Financial Intelligence Unit (FIU) under the Financial Services Commission is reviewing whether to designate suspected criminals and affiliated businesses as “restricted entities” ― a step that would freeze assets and block financial transactions including digital currency.
“All related government departments have held consultations on how to define the nature of the Cambodian criminal organizations and how to respond to them,” an official said.
The discussion comes a week after the United States and Britain jointly announced sanctions on Cambodia’s Prince Group and Huione Group, both accused of human trafficking, money laundering operations and massive cyber fraud.
The U.S. Treasury designated Prince Group as a “transnational criminal organization” and indicted its Chinese-born chairman and CEO, Chen Zhi, on charges of online financial fraud and money laundering. His whereabouts are now reportedly unknown after the sanctions were announced. Huione Group has also been cut off from the U.S. financial system.
The size of their assets in Korea remains unknown. Korean police are now investigating claims that Prince Group operated an office in Seoul, possibly serving as a front for recruitment tied to overseas job scams. The real estate affiliate of Prince Group was found to have been operating an office on the 16th floor of a building in southern Seoul’s Gangnam District since February, under the name KINGMEN REAL ESTATE GROUP.
At Friday’s parliamentary audit, Yoo Jae-seong, acting head of the National Police Agency, said the police are looking into the allegations to determine whether to open a formal investigation into Prince Group affiliates here.
The anticipated Korean sanctions would mark a major shift in tone for Seoul, which has until recently emphasized diplomacy over punitive measures. Meanwhile, the FIU also plans to expand its investigation into money laundering activities involving cryptocurrencies across Southeast Asia by the end of this year.
Reports of kidnappings and illegal confinement of Koreans in Cambodia received by the local Ministry of Foreign Affairs office soared to 330 as of August, compared to just 17 in the entirety of 2023. In many of the cases, victims lured by fake job offers are forced to participate in online fraud schemes, often under threat of torture or death. Earlier this month, anger intensified among the Korean public after a 22-year-old college student abducted in Cambodia was found dead with evidence of severe torture.
To prevent similar tragedies, Korea’s Ministry of Justice began displaying public warnings at Incheon International Airport for passengers departing for Cambodia, alerting them to rising risks of employment fraud, imprisonment and abduction. Airlines have also been directed to distribute leaflets urging caution and providing emergency contact information.
Korean criminal suspects repatriated from Cambodia are taken to police vehicles after arriving at Incheon International Airport, Saturday. Joint Press Corps
Meanwhile, 64 Koreans repatriated from Cambodia on Saturday are under investigation here, according to the National Police Agency.
The suspects, who had been held by Cambodian police, were arrested upon boarding a chartered flight to Korea at around 2 a.m. They are suspected of being involved in crimes such as voice phishing and romance scams operated out of Cambodian criminal compounds. Police are investigating whether they participated willingly or were coerced into the schemes.
By Jung Min-ho
Jung Min-ho has worked as a staff writer at The Korea Times since 2012, mostly covering social and political issues. He currently belongs to the Politics & City Desk where he covers topics such as health, labor and human rights. Prior to joining the team, he was responsible for covering North Korea and sports. His article about a biosecurity breach of Middle East respiratory syndrome won him an award from the Korea Science Journalists Association in 2016. He is also the co-author of the book, “Medical Pioneers of Korea” (2019). He served as the head of the international relations committee at the Journalists Association of Korea from 2021 to 2023.
Source: koreatimes.co.kr
