Cryptocurrency Reigns Supreme in Korea’s Foreign Exchange Crime Scene

Last year, 90% of foreign exchange crimes flagged by customs were linked to cryptocurrencies, with a total of 198 cases detected, marking a 36% increase from the previous year. Despite the rise in cases, the seized amount was down 68% to KRW 1.9 trillion, attributed to a significant detection of KRW 5.6 trillion in foreign exchange remittance cases. The largest share of arrests, totaling KRW 1.654 trillion, was related to foreign exchange fraud, followed by price manipulation, money laundering, and asset evasion. Notably, cryptocurrency fraud accounted for 88% of all fraud cases, signaling a significant increase from previous years, largely driven by arbitrage activities. The Korea Customs Service plans to intensify efforts to combat cryptocurrency-related crimes, including those involving customs duty evasion, by establishing a specialized ‘Virtual Asset Crime Response Team’ to enhance information gathering and analysis capabilities in collaboration with financial and foreign customs authorities. Goh Kwang-hyo, head of the Korea Customs Service, emphasized the need to adapt to the challenges posed by the growing use of virtual assets in trade crimes to realize the government’s goal of a crime-free society.

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