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South Korean court jails three men over gambling sites built with North Korean hackers
The network sold 16 illegal gambling websites to South Korean operators and sent more than 7 billion won to the developers, according to reports.
A South Korean court sentenced three men to prison on Thursday, November 12, for their roles in an illegal gambling website operation that worked with North Korean hackers.
The Seoul Central District Court gave one defendant four years in prison and sentenced the other two to three years each, GamblingNews.com reported. The alleged ringleader, identified by the surname Kim, had previously received a five-year sentence.
The network made approximately 23.5 billion won ($17.6 million) between 2022 and 2024 by selling 16 illegal gambling websites to operators in South Korea, according to South Korean media reports cited by GamblingNews.com.
More than 7 billion won ($5.2 million), roughly 30% of the proceeds, went to North Korean hackers who developed and maintained the platforms. Investigators said the developers were linked to North Korea’s General Bureau 313 and Reconnaissance General Bureau.
Kim contacted North Korean developers based in China and commissioned gambling software, according to the report. Their work included a mobile version of the slot game Sea Story, also known as Bada Iyagi, as well as maintenance, technical support and security management.
Two accomplices allegedly marketed the software to prospective customers on X and Telegram, emphasizing the relatively low cost of setting up gambling sites. Authorities said Kim exchanged over 1,100 messages with the developers through Telegram and other channels, mostly about technical problems and requests for help.
One defendant, Kim’s younger brother, said he did not know the developers were North Korean. Prosecutors challenged that account, pointing to language used in their communications, including a North Korean term for a mobile phone.
The court convicted two defendants under South Korea’s National Security Act alongside gambling-related charges. It convicted the third of operating illegal gambling facilities. Judges cited national security concerns and the social damage caused by illegal online gambling when imposing the sentences.
In 2024, South Korea’s National Intelligence Service exposed a separate suspected North Korean software operation in Dandong, China. Investigators said its developers posed as Chinese nationals and offered to build illegal gambling sites for around $5,000, with maintenance costing an additional $3,000 per month.