South Korea's National Intelligence Service detected a company using cryptocurrency to illegally transfer foreign currency overseas, prompting the Ministry of Economy and Finance to convene an inter-agency response meeting on June 10. The meeting followed an emergency market stabilization review held on June 7 and focused on investigating illegal foreign exchange transactions threatening forex market stability. Participating agencies included the National Intelligence Service, National Tax Service, Korea Customs Service, Financial Supervisory Service, and Bank of Korea.
NIS Detects Company Using Digital Assets for Illegal Currency Transfers
The National Intelligence Service recently detected a company that disguised client funds as trade payments to transfer foreign currency overseas, purchased digital assets locally abroad, brought them into Korea, and converted them to cash in Korean won. The inter-agency task force plans to investigate whether this company concealed overseas assets and forged trade invoices.
Customs Reports 415.4 Billion Won in Illegal Forex Transactions Detected by May
The Korea Customs Service has been conducting foreign exchange inspections targeting illegal forex transactions exploiting high exchange rates since January. As of May, customs detected 415.4 billion won in illegal foreign exchange transactions.
Government Announces Expanded Investigation Targeting Four Categories of Violations
The task force plans to expand investigations into illegal foreign exchange transactions disrupting the forex market through inter-agency cooperation. The government will focus investigations on four categories: illegal early payment of import costs and delayed receipt of export proceeds by companies, irregular trade settlements, and overseas asset transfer activities. Upon detection, authorities will take strict measures according to relevant laws. Irregular trade settlements refer to trade payment settlements through alternative means such as currency exchange schemes or digital assets instead of payments and receipts through banks, which impede dollar liquidity supply.
The Ministry of Economy and Finance stated it decided to operate the illegal foreign exchange transaction response task force on a permanent basis, and through this, plans to continuously generate meaningful results and do its utmost to block illegal foreign exchange transactions that undermine forex market stability.
FAQ
What did South Korea's National Intelligence Service detect on June 10?
The National Intelligence Service detected a company that used cryptocurrency to illegally transfer foreign currency overseas by disguising client funds as trade payments, purchasing digital assets abroad, and converting them to Korean won domestically. The Ministry of Economy and Finance held an inter-agency response meeting on June 10 to address this and other illegal forex transactions.
How much illegal foreign exchange activity did Korean customs detect by May?
The Korea Customs Service detected 415.4 billion won in illegal foreign exchange transactions as of May. Customs began conducting foreign exchange inspections in January targeting illegal transactions exploiting high exchange rates.
What categories will the government investigate for illegal forex violations?
The government task force will focus investigations on four categories: illegal early payment of import costs and delayed receipt of export proceeds by companies, irregular trade settlements using alternative means like digital assets instead of banks, and overseas asset transfer activities. Authorities will take strict measures according to law upon detection.
