A South Korean expert has claimed that public interest in crypto is one of the factors contributing to a rising number of embezzlement cases.
Per Herald Kyungaje, recently released prosecution service data shows that criminal cases related to “embezzlement and breach of trust” in the nation rose 29% year-on-year in 2023.
South Korean Embezzlement Cases: ‘Employees Tempted to Buy Crypto and Stocks’
In total, the service dealt with 3,966 cases in 2023, with data for 2024 not yet publicly available.
The public prosecution service offices in Chuncheon, South Korea. (Source: Twotwo2019 [CC BY 4.0])The media outlet noted that this figure excludes “simple embezzlement cases” pertaining to “lost property.”
It also excludes cases that are settled out of court. As such, the newspaper wrote, “the number of embezzlement and breach of trust cases actually occurring in companies is likely even higher.”
The same media outlet spoke to Park Ki-tae, an adjunct professor at Dongguk University and a doctor of criminology.
Park, also a former director of the National Police Agency’s Audit Office and now the CEO of an embezzlement detection software firm, said that many domestic firms have “weak embezzlement prevention systems.” The expert said:
“Economic uncertainty has persisted after the coronavirus pandemic. And more employees have been tempted into making speculative investments in stocks, gambling, and cryptocurrencies.”
The expert also claimed that “embezzlement methods” are becoming “more diverse and sophisticated” as “the number of non-face-to-face digital financial transactions increases.”
Case Numbers Rising Fast
The news outlet added that the figures show that prosecutors are now dealing with “an average of about 11 cases of embezzlement and breach of trust per day.”
That is the rough equivalent of one case “every two hours,” the outlet wrote. It added that South Korea was experiencing a “golden era of embezzlement.”
The data also shows that 216 citizens were arrested for embezzlement and breach of trust cases violations last year.
It also shows that embezzlement and breach of trust cases involving amounts over 500 million won ($344,260) rose “by about 40% year-on-year to 612 cases.”
Bigger Rises in 2024?
News reports from 2024 suggest next year’s data could point to further rises, as well as yet-closer connections to crypto.
In December, a court sentenced a bank employee who stole money from his employer to buy crypto to 15 years in jail.
Earlier, the country was stunned by reports that a civil servant stole $2.8 million worth of public health insurance funds.
The civil servant then converted the money to crypto and fled the country. He was later arrested on embezzlement charges in the Philippines, where he had been living in a high-end resort.
Earlier this month, prosecutors indicted a serving attorney on embezzlement and fraud charges. Officials suspect the lawyer and five others of operating a $7.9 million “scam coin” sales platform.
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