Photo is unrelated to the article. [Yonhap]
Photo is unrelated to the article. [Yonhap]

The ringleader of a fraud ring that recruited members by promising to reveal winning lottery numbers through an analysis system, then swindled them out of 6.62 billion won ($4.96 million), has been sentenced to a heavy prison term.

Incheon District Court Judge Kim Ji-hu sentenced the ringleader, identified only as A, 33, to seven years in prison on charges of fraud and organizing a criminal enterprise, the court announced Sunday.

A was indicted on charges of defrauding victims roughly 14,000 times between April 2021 and August 2023, operating out of an office in Incheon's Michuhol-gu and collecting 6.62 billion won from recruited members.

A acquired two lottery number prediction websites and built a structured organization — including a representative, an office manager, and first- and second-tier telemarketers — to systematically recruit members.

In addition to those who signed up directly, A also used member lists purchased from illegal brokers to target potential victims.

A directed telemarketing staff to deceive victims by falsely claiming to have predicted second- or third-prize winning numbers after each Saturday draw, even when no such wins had occurred. When numbers failed to match, victims were told they could extend their subscription period — but only by upgrading to higher-tier memberships requiring payments of at least 1.1 million won or 2.2 million won.

The numbers provided to victims, however, were randomly generated.

Judge Kim said the defendant's conduct was "extremely poor in character, and the scale of damage is substantial given that the fraud was carried out in an organized manner," while noting that the court "took into account that the defendant has shown remorse and that some victims who recovered their losses do not wish to see punishment imposed."

Lotto sales hit record 6.2 trillion won last year

[Yonhap]
[Yonhap]

Separately, lotto ticket sales last year broke the all-time record again, reaching 6.2 trillion won — the highest since the game launched.

Some analysts say the prolonged economic downturn is driving more people to buy lottery tickets.

According to sales data compiled from Donghang Bokgwon, the lottery's licensed operator, lotto sales last year totaled 6.21 trillion won, up 4.6 percent from the previous year.

It marked the first time annual lotto sales surpassed 6 trillion won, setting a record since sales began in December 2002.

The lotto craze peaked on April 12, 2003, when a single first-prize winner in the 19th draw took home 40.72 billion won — a record that still stands. That year alone, 3.80 trillion won worth of tickets were sold.

In response, the get-rich-quick frenzy and concerns over the game's speculative nature prompted the government to reduce the number of rollovers allowed when there is no first-prize winner from three to two. In 2004, the price per game was cut from 2,000 won to 1,000 won.

Sales cooled as a result, falling to the 2 trillion won range and hitting an all-time low of 2.26 trillion won in 2007. They have been climbing steadily since.

The average first-prize payout last year was 2.06 billion won. After taxes, winners of a 2 billion won prize take home around 1.4 billion won.


yul@heraldcorp.com