Teen gamblers turn to loan sharks, classmates and parents’ bank accounts

Teen gamblers in South Korea have increasingly turned to informal lending networks, classmates and even their parents' bank accounts to fund their online gambling activities, according to recent reports. A surge in youth gambling cases has been recorded since the launch of a government-led voluntary reporting program aimed at addressing the issue. As of early August, 806 cases of underage online gambling were reported within the first two months of the initiative, with the number rising sharply in its second month. The program, initiated on May 18 and set to run until August 31, allows individuals under 19 who engage in online gambling, along with their parents or guardians, to submit reports through the 117 school violence reporting and counseling hotline. The rise in submissions, reaching 512 cases in the second month compared to 294 in the first, has been attributed to increased public awareness and efforts to uncover previously concealed instances of youth gambling. Among these cases, 629 were directly reported by teenagers, while 177 were submitted by family members. One notable case involves an 18-year-old in Gyeonggi Province who borrowed 5 million won ($3,400) from approximately 10 illegal lenders at interest rates exceeding 200 percent. Facing threats and other forms of unlawful debt collection, he eventually reported his gambling activity to authorities under the program. His case highlights the severe financial risks faced by young gamblers, who often resort to high-interest loans to sustain their habits. In Busan, a 14-year-old middle school student reportedly borrowed a combined 2 million won from 41 classmates. Upon investigation, police discovered that he had spent a total of 26 million won on online gambling platforms. This case emerged after a school police officer, alerted by a teacher regarding unusual financial transactions, conducted an inquiry involving the school's students. Similarly, in Daegu, a 13-year-old admitted to starting gambling in the sixth grade of elementary school to generate extra spending money. By the time he reported his actions, he had accumulated a total of 6.5 million won in gambling-related expenses. Another instance in Mungyeong, North Gyeongsang Province, revealed a 14-year-old who secretly withdrew 30 million won from his father’s bank account over multiple transactions, using the funds for gambling purposes. The program emphasizes rehabilitation and treatment rather than punitive measures. Once a report is received, a school police officer and a gambling treatment counselor conduct an initial consultation and screening assessment. Based on the findings, the teenager may be directed to a gambling prevention and treatment center, a psychiatric addiction treatment program, or debt adjustment services. The decision-making process considers factors such as the amount deposited into gambling sites, the teenager’s attitude toward the problem, and their progress in treatment. A juvenile guidance review committee at the relevant police station reviews each case and may recommend lenient measures, including warnings or referrals for summary proceedings. Follow-up counseling and support are also provided by school police officers and counselors from the Korea Problem Gambling Agency to help prevent relapse and promote long-term recovery.