South Korea’s Customs Service has uncovered widespread illegal activity involving 61 money exchange businesses, some of which were found to have facilitated large-scale underground remittance using cryptocurrency. The crackdown revealed extensive violations, including falsified ledgers, inadequate documentation, and unregistered virtual asset transactions.
Between March and May 2025, customs officials conducted targeted inspections of 127 high-risk money changers, selected from 1,409 registered entities nationwide. The investigation uncovered a wide range of illegal practices, including unauthorized use of foreign exchange certificates and the omission or manipulation of transaction records.
Among the most serious cases:
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One exchange firm facilitated the receipt of ₩2.05 trillion (approx. $1.5 billion) for copper scrap exports via cryptocurrency.
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Another was involved in ₩58 billion (approx. $42 million) in unauthorized cross-border transfers between Korea and Russia through a fintech-crypto channel.
Some operators reportedly registered under naturalized Korean identities or conducted unrecorded transactions near U.S. military bases, citing customers’ lack of proper ID as justification for skipping record-keeping. Investigators believe these tactics were used to systematically evade oversight.
Of the 61 penalized businesses:
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42 were operated by Korean nationals, and 19 by foreign nationals.
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Administrative actions included 30 suspensions, 3 license revocations, and various fines and warnings.
Korean Customs emphasized that six of the cases were severe enough to initiate formal criminal proceedings under anti-money laundering and foreign exchange laws. Authorities are also offering monetary rewards for internal whistleblowers, in an effort to strengthen internal accountability within the industry.
A customs spokesperson warned, “These acts go beyond administrative violations—they are conduits for money laundering, tax evasion, and hiding criminal assets.” The agency plans to expand cooperation with financial regulators and prosecutors for continued investigations and system-wide reforms.
Experts say this operation signals a significant step toward cleaning up Korea’s remittance and currency exchange ecosystem. Still, they stress the urgent need for regulatory upgrades and international cooperation to combat the growing use of crypto in financial crimes.
