Stalking and Staging Accidents: Gang Extorts 200 Million Won in Insurance Fraud and Settlements

▲ A scene where the group intentionally causes an accident

A group has been apprehended for staging intentional traffic accidents targeting drivers leaving bars in popular tourist areas, as well as those violating traffic laws, and extorting a total of 200 million won in insurance payouts and settlement money by threatening to report them to the police.

The Gyeongnam Provincial Police Agency's Traffic Division announced on July 6 that they have apprehended 22 individuals on charges of violating the Special Act on the Prevention of Insurance Fraud and joint extortion under the Act on the Punishment of Violent Acts.

Police have arrested three ringleaders, including a 45-year-old identified by the surname A, who systematically conspired to destroy evidence, while 19 others were booked without detention.

The group, consisting of local acquaintances, couples, and romantic partners, is accused of extorting approximately 200 million won in insurance money and criminal settlement funds across 14 separate incidents between January 2022 and June 2024, primarily targeting drunk drivers in tourist hotspots such as Jeju and Geoje.

Investigations revealed that the group would stake out bars near tourist attractions, follow vehicles driven by people who had been drinking, and intentionally cause accidents before threatening the victims by saying, "We will report your drunk driving to the police."

They also employed methods such as having an acquaintance join a drinking party to encourage them to drive, sharing the acquaintance's real-time location with accomplices to stage an accident, and then pressuring the victim to settle the matter to avoid police involvement.

It was also confirmed that they committed similar crimes by intentionally targeting vehicles that violated traffic laws.

During the planning process, they scouted for accomplices, assigned specific roles, and prepared foreign luxury cars and motorcycles to be used in the crimes.

The money extorted was used for purposes such as paying off debts and covering living expenses.

After receiving intelligence in March of last year, the police conducted search and seizure operations at the suspects' workplaces and residences and analyzed bank accounts to determine the details of the crimes, eventually apprehending all suspects, including ringleaders who were staying overseas in countries such as Vietnam.

The police, who are currently investigating additional crimes, plan to refer the suspects to the prosecution once the investigation is concluded.

A police official stated, "Insurance fraud is a serious crime that disrupts the national financial order and harms the public," adding, "If you suspect you are a victim of insurance fraud, please actively report it to your nearest police station."

(Photo courtesy of Gyeongnam Provincial Police Agency, Yonhap News)

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