South Korean customs officials have dismantled an international network allegedly laundering approximately $102 million through cryptocurrency and the local banking system.
The Korean Customs Service (KCS) announced in a statement that it has referred three individuals to prosecutors for violating the Foreign Exchange Transactions Act.
Authorities allege that the network operated between September 2021 and June 2025 and illegally circulated a total of 148.9 billion won (approximately $101.7 million). The suspects allegedly channeled the funds by disguising them as legitimate expenses such as cosmetic surgery or tuition fees.
To avoid detection, they reportedly purchased crypto assets in different countries, transferred these assets to crypto wallets in South Korea, and then converted them to local currency, distributing them across numerous bank accounts.
Context of Increased Scrutiny on Illicit Currency Movements
This operation comes at a time when South Korean authorities are tightening controls on illegal currency movements. On January 13, the KCS announced that it would conduct “intensive inspections” throughout the year against underground currency exchange activities that could threaten exchange rate stability.
The raids are also prompted by striking discrepancies in the country’s foreign exchange inflows and outflows. According to data released last week by KCS, the difference between trade revenues processed by banks and the value of goods declared at customs reached approximately $290 billion in 2025. This figure, the highest in the last five years, has raised concerns about illicit capital movements.
Furthermore, a separate currency audit conducted in 2025 targeting a specific sector revealed that 97% of the companies examined had engaged in illegal transactions totaling 2.2 trillion won.