Deliberately Causing Accidents Only With Lane Violators... 80 Million Won Collected Over Four Years

Jeonnam Police Refer 11, Including Mokpo Gang Members, to Prosecution

A group consisting of organized crime members and their associates have been referred to the prosecution after deliberately causing traffic accidents involving only vehicles that violated lane rules, subsequently collecting insurance payouts.

The Jeonnam Provincial Police Agency announced that it had referred 11 individuals, including a 25-year-old Mokpo-based gang member identified as A, to the prosecution without detention on charges of violating the Special Act on Insurance Fraud Prevention.

Jeonnam Provincial Police Agency building.

They are suspected of targeting vehicles violating lane regulations in the Mokpo area over a period of about four years and six months, from April 2021 to October last year, deliberately causing 11 separate traffic accidents for which they collected approximately 80 million won in insurance payouts.

The investigation revealed that the ringleader, A, is an enforcer with a Mokpo-based crime syndicate, while the remaining accomplices were identified as juniors or seniors within the local community. They divided up roles in advance, driving or riding as passengers in the vehicle, then colliding deliberately with other lane-violating vehicles and staging the incident as if it were an accidental traffic accident to claim insurance money.

Police also believe that after the accident, the suspects exaggerated the extent of their injuries, making it appear as though hospitalization was necessary as part of their scheme.

The crime was uncovered after the insurance company found the circumstances of the accidents suspicious. The ensuing police investigation began when the insurer belatedly suspected intentional accidents and filed a petition with the Jeonnam Provincial Police Agency.

The police spent several months investigating those involved and obtained statements regarding the staged accidents. They also secured forensic accident reports and false medical records from the National Forensic Service and the Road Traffic Authority to verify the criminal actions. In particular, police explained that they analyzed the financial transactions of four key suspects, including A, confirming the deposit and withdrawal records related to the distribution of insurance money and used this evidence to establish their guilt.

Some suspects initially denied their involvement at the beginning of the investigation but reportedly admitted to the charges when confronted with the evidence collected by the police.

The police wrapped up the investigation and, on September 29, referred all 11 individuals, including A, to the prosecution.

A Jeonnam Provincial Police Agency official stated, "Insurance fraud is a typical financial crime that undermines the insurance system, which is meant to serve as a social safety net, and leads to increased premiums for many honest policyholders. We will continue to respond sternly to eradicate insurance fraud."

Meanwhile, the number of detected cases of traffic accident-related insurance fraud in Jeonnam is on the rise. The count dropped from 98 cases in 2024 to 42 cases in 2025, but so far this year, 111 cases have already been detected.

This content was produced with the assistance of AI translation services.