Ring smuggled about 40,000 Hong Kong gold bars into Japan
Sentenced to 662.3 billion won fine in 2019 appeal ruling, then vanished
Used multiple phones and foreign-registered Telegram accounts to evade detection
Refuses to pay fine; faces up to 3 years in labor detention
The logistics chief of a gold-bar smuggling ring who vanished without paying hundreds of billions of won in fines has been caught by prosecutors after seven years on the run. The outstanding fine currently stands at around 653.7 billion won ($474 million) — the largest unpaid fine ever recorded by prosecutors.
The Seoul Western District Prosecutors' Office apprehended the man, identified only as A, a South Korean in his 50s, in Yeongdeungpo-gu, Seoul, on Aug. 21, according to legal sources Tuesday.
A oversaw the transportation operations of a ring that smuggled roughly 40,000 gold bars sourced from Hong Kong into Japan through transit zones at domestic airports. The group concealed the bars on the bodies of travelers to move them across the border, netting hundreds of billions of won in profit from price differences, according to the investigation.
A trial court sentenced A to two years and six months in prison and a fine of 1.3 trillion won ($946 million). On appeal in 2019, the sentence was reduced to one year and four months in prison and a fine of 662.3 billion won.
A was released during the appeals process and disappeared after the ruling was handed down. He spent roughly seven years evading prosecutors' efforts to collect the fine.
He also took steps to avoid detection. A repeatedly switched mobile phones and used Telegram accounts registered under foreign nationals' names to cover his tracks, the investigation found.
Prosecutors located and detained A in Yeongdeungpo-gu, Seoul, on Sunday after a prolonged pursuit.
After his arrest, A argued that he was no longer obligated to pay the fine because the five-year statute of limitations on fines had already expired. Prosecutors rejected the claim.
After recalculating the amount, prosecutors determined that approximately 653.7 billion won remains outstanding — the largest unpaid fine in any case prosecutors have on record.
A has said he has no remaining assets and has refused to pay. He has been placed in labor detention in lieu of the fine.
Under current criminal law, a person who fails to pay a fine may be held in labor detention for a period set by the court. Authorities may also pursue compulsory seizure of assets against those who fail to pay.
However, labor detention is capped regardless of the size of the fine. A can be held for a maximum of three years, meaning he is set to complete his labor detention in 2029 barring any unexpected developments. How much of the hundreds of billions of won in fines can actually be recovered remains an open question.
kwater@heraldcorp.com
