Money Brokers Found Operating in GRAC-Approved Games

Illegal money brokers have been discovered operating inside sports prediction games that carry official approval from South Korea's Game Rating and Administration Committee, according to revelations made during a parliamentary audit. The brokers guide players through a scheme involving the games' donation features to convert winnings into cash, despite regulatory awareness of the problem dating back two years.

During an October 12 parliamentary hearing before the National Assembly's Culture, Sports and Tourism Committee, Representative Jung Yeon-wook of the People Power Party confronted GRAC Chairman Seo Tae-geon over the continued illicit activity. The lawmaker highlighted a troubling pattern: games marketed as "legal sports prediction games officially approved by the Game Rating and Administration Committee" contain active money brokers exchanging currency and sharing contact information through Telegram. Chat logs disclosed by Rep. Jung showed brokers offering to exchange winnings ranging from 10,000 won to 10 million won, with players transferring money through the in-game donation system and finalizing transactions via Telegram.

The scheme operates through a coordinated process. Players contact brokers within the game, use the donation feature to transfer their winnings, and then coordinate the actual cash payout through the messaging app. Rep. Jung characterized the Telegram coordination tactic as a hallmark of illegal operations. Chairman Seo confirmed that such currency exchange activities violate the law.

What made the situation more troubling was GRAC's prior knowledge of the problem. When questioned, Chairman Seo acknowledged that the committee had internally detected money brokers conducting currency exchanges in the same game during 2024 and had requested police investigation. However, the case went unresolved because authorities could not identify the suspects responsible. Rep. Jung pointed out that the identical welfare organizations listed on the game's donation screen had remained unchanged since the issue was first flagged two years earlier, demonstrating a complete lack of progress despite regulatory intervention.

Rep. Jung drew parallels to a previous case where GRAC uncovered evidence of direct collusion between a game operator and money brokers. That investigation expanded into allegations involving approximately 70 billion won in illegal sports betting operations, ultimately resulting in the forfeiture of around 5.32 billion won in criminal proceeds. The lawmaker stressed that the official branding used by these games—claiming legal status and regulatory approval—creates a false sense of legitimacy that encourages participation.

In response to the revelations, Rep. Jung demanded a comprehensive investigation of all approximately 88 sports prediction games currently in operation to identify illegal cashing-out practices. He called for games found engaging in such activities to be designated as high-risk and subject to enhanced monitoring, with progress reports submitted to his office.

Chairman Seo acknowledged the concerns and outlined steps already taken. He noted that following previous crackdowns on currency exchange issues, GRAC revoked ratings in 2023 and subsequently prohibited features easily exploited for illegal cash-outs, including gifting and donation functions. However, he explained that the games currently causing problems received their ratings before the 2023 policy change. He committed to conducting comprehensive and targeted investigations to address existing issues and pledged to report findings and remedial plans to the committee.