US threatens Fiji aid cut over alleged human trafficking cult impunity

The United States has issued one of its strongest warnings yet to Fiji, threatening to downgrade the Pacific island nation to the lowest possible tier on Washington’s global human trafficking index unless authorities take decisive action against the Grace Road Group, a South Korean religious sect accused of human trafficking, forced labor, and other serious abuses. The move, confirmed by a US State Department official speaking to the Organized Crime and Corruption Reporting Project (OCCRP), could jeopardize millions of dollars in development assistance and significantly alter Fiji’s economic and diplomatic outlook.

At the center of the dispute is the State Department’s annual Trafficking in Persons (TIP) report, which assesses governments’ efforts to combat human trafficking. Fiji currently sits on the Tier 2 Watchlist, the second-lowest category. A downgrade to Tier 3-the bottom rung, shared with countries such as Cambodia and North Korea-would signal that Fiji is failing to meet even the minimum standards for addressing trafficking and is not making significant efforts to do so. Such a designation would potentially cut off all non-humanitarian US assistance and could prompt Washington to pressure major multilateral lenders to curtail their support.

According to the State Department official, the US is “deeply concerned about indicators of transnational organized crime and human trafficking associated with the Grace Road Group,” as well as broader trafficking-related issues in Fiji. The official emphasized that Fiji still has a narrow window to avoid the downgrade, but only if it demonstrates tangible progress by the end of March. Without such action, a Tier 3 designation in the 2026 TIP report appears increasingly likely.

Grace Road Group, which relocated from South Korea to Fiji in 2014, presents itself as a religious community preparing for an imminent nuclear Armageddon. Over the past decade, however, it has grown into a powerful economic conglomerate in Fiji, operating supermarkets, beauty salons, restaurants, farms, and other businesses. With roughly 300 members in the country, the group has embedded itself deeply into the local economy, generating both jobs and controversy.

For years, former members and international watchdogs have accused Grace Road of exploiting its followers through practices that mirror modern-day slavery. The State Department’s most recent TIP report, published in late September, marked the first time the group was explicitly named. It stated that members “experience conditions indicative of human trafficking,” including being forced to work excessive hours without rest days, suffering physical violence, having their passports confiscated, and being denied wages.

The urgency of the US response intensified after at least four American citizens-including two children-escaped from the group since late last year. Their departures raised alarm in Washington and underscored concerns that US nationals were being subjected to abuse under Fiji’s watch. These cases, combined with mounting evidence from other former members, appear to have pushed US officials toward a more confrontational stance.

Fijian authorities insist they are not ignoring the issue. Fiji Police told OCCRP that between 2024 and 2025 they forwarded four investigation files to the Office of the Director of Public Prosecutions (ODPP) related to human trafficking allegations involving Grace Road. Two of those cases involve complaints made by US citizens. An ODPP media liaison officer confirmed that all four files are currently under review.

Yet for critics, these steps fall short of what is required. Investigations without prosecutions, they argue, have become a familiar pattern in Fiji’s handling of Grace Road. Despite repeated allegations, the group has continued to expand its business empire, even announcing plans to open a 60-room hotel in Fiji’s Western Division.

The perception of impunity is reinforced by the cult’s history in the country. Previous OCCRP reporting revealed that Grace Road benefited from government support during the authoritarian rule of former Prime Minister Frank Bainimarama, including millions of dollars in state-backed loans. Although ministers in the current government have pledged a tougher approach, concrete outcomes have been limited.

One high-profile case illustrates the problem. Daniel Kim, the son of Grace Road’s imprisoned leader Ok-joo Shin and a senior figure in the group, was declared a “prohibited immigrant” by Fijian authorities and detained on immigration offenses in 2023. However, he was reportedly released on bail last November pending a judicial review, allowing him to remain in the country as legal proceedings drag on.

The potential consequences of a Tier 3 designation extend far beyond diplomatic embarrassment. While US aid to Fiji totaled just $6.5 million in 2023-around two percent of total foreign assistance-the symbolic and practical effects of a downgrade would be substantial.

A Tier 3 ranking would make Fiji ineligible for many forms of US development assistance and could derail plans to include the country in a Millennium Challenge Corporation (MCC) compact program. The MCC is a flagship US aid initiative aimed at reducing poverty and promoting economic growth through large-scale, multi-year investments. For Fiji, which faces declining foreign aid across the Pacific, such a compact represents one of the few remaining opportunities to secure significant new funding.

Riley Duke, a development aid expert at Australia’s Lowy Institute, warned that US pressure on multilateral lenders could be even more damaging. Institutions such as the World Bank and the Asian Development Bank provide tens of millions of dollars annually to Fiji. If Washington were to urge these bodies to reconsider their funding, the impact on Fiji’s development prospects would be severe.

“With financing for development tightening, an area that’s been a case of optimism is getting sort of snuffed out,” Duke said, adding that reduced multilateral support “would be very material for the country’s development outlook.”

Fiji’s leadership appears acutely aware of the stakes. Prime Minister Sitiveni Rabuka has announced the formation of an inter-ministerial task force led by his office, bringing together the ministries of justice, policing, immigration, and finance. The task force is intended to provide strategic direction and oversight of national efforts to combat human trafficking and address the concerns raised in the TIP report.

Rabuka has also stated that joint investigations involving immigration, customs, and police are nearing completion. Immigration Minister Viliame Naupoto confirmed that officials from multiple ministries have met with US counterparts to discuss the outcomes demanded by Washington.

While these steps suggest a more coordinated approach, skeptics question whether they will translate into meaningful accountability-particularly given the political and economic influence Grace Road has accumulated over the years.

The most disturbing aspects of the case lie in the testimonies of former members. OCCRP has reviewed three reports filed with police by American citizens who previously belonged to Grace Road, including a teenage boy. The reports allege forced labor under slave-like conditions, with members working from early morning until late at night in cult-owned businesses.

Former members describe a regime of fear and violence designed to enforce obedience. Alleged punishments included regular beatings for minor infractions such as falling asleep during sermons or failing to follow instructions at work. Particularly chilling are accounts of ritualized public humiliation sessions known as “the threshing floor.”

One former American member described how participants would sit in a large circle while individuals were called forward to be beaten, slapped, kicked, and dragged by their hair. Windows were shut, she said, to isolate the group from the outside world. Members were sometimes encouraged to join in the violence, told that it was necessary to “wake up” those deemed spiritually dead or possessed by demons.

Although OCCRP could not independently verify these specific claims, they closely mirror testimony from other former members and align with findings from Ok-joo Shin’s criminal trial in South Korea. Shin, often described by followers as the only path to eternal life, was arrested in 2018 and remains imprisoned on convictions including child abuse, assault, and fraud. Despite her incarceration, the movement she founded has continued to operate and expand abroad.

For the United States, the threat to downgrade Fiji is not merely about one cult. It is a test of Washington’s broader commitment to combating human trafficking and transnational organized crime, even when doing so risks straining relations with strategic partners in the Pacific. For Fiji, it is a moment of reckoning that will reveal whether years of allegations and investigations finally lead to accountability.

Grace Road has denied wrongdoing in the past and did not respond to recent questions. Yet the growing weight of evidence, combined with international pressure, has made continued inaction increasingly untenable. As the March deadline approaches, Fiji faces a stark choice: confront a powerful and deeply entrenched group, or risk international censure and the loss of vital development support.

The outcome will not only shape Fiji’s standing in the global fight against human trafficking but also determine whether vulnerable individuals trapped within closed communities like Grace Road can expect protection from the state. In that sense, the US ultimatum represents more than a diplomatic warning-it is a challenge to Fiji’s credibility as a country committed to the rule of law and human rights.

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Jennifer Hicks is a columnist and political commentator writing on a large range of topics.