A broker and 13 foreign workers have been arrested for their involvement in a sophisticated scheme to defraud the Korean government by faking industrial accidents. The suspects allegedly intentionally injured themselves to extend their stay in South Korea and collect insurance payouts.

The Busan Metropolitan Police Agency's Criminal Mobile Unit announced on Tuesday that they had arrested a broker, identified only by the surname A, and 13 foreign nationals on charges of fraud and violations of the Industrial Accident Compensation Insurance Act. Two other accomplices were also booked.

According to the police, A, a man in his 40s, targeted foreign workers who were either overstaying their visas or nearing the end of their permitted stay in South Korea. Between August 2022 and 2022, he allegedly instructed these individuals to intentionally injure themselves, such as by severing their fingers, in order to file false industrial accident claims.

A created fake employment contracts and workplaces to make it appear as though the injuries had occurred on the job. This made it difficult for the government agency responsible for processing these claims to verify the authenticity of the claims.

By feigning workplace accidents, the foreign workers were able to obtain industrial accident visas, extending their stay in South Korea. They also received substantial compensation payments from the government, ranging from 10 million to 31 million won. A pocketed between 8 million and 15 million won from each worker for his role in the scheme.

Leveraging his experience working at a legal services office, A recruited acquaintances to act as interpreters and facilitated the fraudulent activities.

"The foreign suspects not only received medical treatment and compensation benefits from the Korea Workers' Compensation and Welfare Service but also secured legal status to continue working in Korea," a police official said. "Those who were found to be overstaying their visas have been forcibly deported."

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