[Photo by reporter Kim Yu-jin]
South Korea is strengthening interagency enforcement as authorities continue to uncover large-scale overseas outflows of funds through illegal foreign exchange transactions.
The Ministry of Finance and Economy said Saturday that it held an all-government meeting of its Illegal Foreign Exchange Transaction Response Team on April 30 to review enforcement results and major cases.
The team said it found that a small overseas remittance operator abused virtual accounts to illegally send about 400 billion won overseas, including proceeds from online gambling sites. The case was referred to prosecutors on suspicion of operating an unregistered foreign exchange business, among other allegations.
Authorities also confirmed that a money broker received about 200 billion won in used-car and auto-parts export payments in virtual assets without filing required reports, then paid won to domestic firms after deducting fees. That case was also sent to prosecutors, and additional probes of the related companies are underway.
In another case under investigation, exporters allegedly underreported scrap metal export prices and brought the difference into South Korea through a money-transfer scheme using accounts held under borrowed names.
The government cited interagency coordination in the investigations. The Financial Supervisory Service shared suspected illegal remittance activity found during an inspection with the Korea Customs Service, which investigated and referred the case to prosecutors. The National Tax Service is examining whether the companies evaded taxes, and the National Intelligence Service is supporting collection of information on overseas-linked crimes. The finance ministry and the Bank of Korea said they are reinforcing the response system by expanding foreign exchange information sharing and improving related rules.
The government said it will continue to tighten enforcement through coordinated action as illegal foreign exchange transactions grow more complex and sophisticated.
The response team was launched in January and is operating a joint framework. At a meeting held last month, it said it would respond strictly, including immediate complaints over the spread of false information and illegal foreign exchange transactions.
The Ministry of Finance and Economy said Saturday that it held an all-government meeting of its Illegal Foreign Exchange Transaction Response Team on April 30 to review enforcement results and major cases.
The team said it found that a small overseas remittance operator abused virtual accounts to illegally send about 400 billion won overseas, including proceeds from online gambling sites. The case was referred to prosecutors on suspicion of operating an unregistered foreign exchange business, among other allegations.
Authorities also confirmed that a money broker received about 200 billion won in used-car and auto-parts export payments in virtual assets without filing required reports, then paid won to domestic firms after deducting fees. That case was also sent to prosecutors, and additional probes of the related companies are underway.
In another case under investigation, exporters allegedly underreported scrap metal export prices and brought the difference into South Korea through a money-transfer scheme using accounts held under borrowed names.
The government cited interagency coordination in the investigations. The Financial Supervisory Service shared suspected illegal remittance activity found during an inspection with the Korea Customs Service, which investigated and referred the case to prosecutors. The National Tax Service is examining whether the companies evaded taxes, and the National Intelligence Service is supporting collection of information on overseas-linked crimes. The finance ministry and the Bank of Korea said they are reinforcing the response system by expanding foreign exchange information sharing and improving related rules.
The government said it will continue to tighten enforcement through coordinated action as illegal foreign exchange transactions grow more complex and sophisticated.
The response team was launched in January and is operating a joint framework. At a meeting held last month, it said it would respond strictly, including immediate complaints over the spread of false information and illegal foreign exchange transactions.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.