All 21 members of insurance fraud ring that pocketed W320m nabbed

Gang defrauded 9 insurers of 320 million won

Targeted only vehicles committing traffic violations

All 21 suspects, mostly hometown acquaintances, arrested

A suspect in an insurance fraud ring that extorted 320 million won ($236,000) through staged collisions approaches the other vehicle after a deliberate fender-bender. [Seoul Gwangjin Police Station]

All 21 members of an organized insurance fraud ring that pocketed 320 million won ($236,000) through staged traffic accidents have been arrested. The group deliberately caused collisions with vehicles already committing traffic violations, then extorted settlement money from the drivers.

Seoul's Gwangjin Police Station said Monday it had booked all 21 suspects without detention on charges of violating the Special Act on Insurance Fraud Prevention and referred them to prosecutors. The group was sent to prosecutors in two batches — on Aug. 28 and Oct. 29.

Between January 2024 and November 2025, the suspects used rental cars to stage 43 collisions with vehicles committing traffic violations, particularly those illegally changing lanes while making left turns.

A scene showing members of the insurance fraud ring deliberately causing a collision with a vehicle changing lanes after a left turn. [Seoul Gwangjin Police Station]

Even when the collisions were minor and required no medical treatment, the suspects checked into hospitals complaining of pain and fraudulently collected insurance payouts from nine insurers under the guise of settlement money. They also exploited a loophole in rental car policies: drivers involved in accidents with rental vehicles face no deductible liability. Police found that most suspects were in their early 20s and were connected as hometown seniors and juniors, operating as a coordinated criminal organization.

While the group continued its scheme, police received a tip from one of the victimized insurers and launched an investigation. Over several months, investigators gathered witness statements and closely analyzed accident footage before making the arrests.

"We will actively crack down on automobile insurance fraud and work with insurers to defer premium surcharges for drivers whose vehicles were hit, in order to remedy the harm done to them," a police official said.

The official added that police and insurers plan to cooperate closely from the earliest stages of any report to prevent harm in cases where a traffic accident is suspected to be deliberate.

20ki@heraldcorp.com