Foreign currency smuggling cases jump over tenfold in 4 years in S. Korea

Seoul, Oct 5 (IANS) Illegal inflows and outflows of foreign currency have soared more than tenfold over the past four years, reaching a record high in the first half of 2025, data showed on Sunday.

The amount of foreign currency seized in such cases reached 143.5 billion won (US$102.14 million) in the January-June period, more than double the 65.5 billion won recorded for the whole of 2024, according to the data compiled by the Korea Customs Service and released by Rep. Park Sung-hoon of the main opposition People Power Party, reports Yonhap news agency.

Seized amounts have been on a marked increase over the years, rising from 14.3 billion won in 2021 to 17.5 billion won in 2022 and further to 46.4 billion won in 2023.

The number of cases of illegal foreign currency trade has also grown steadily from 369 in 2021 to 537 in 2022, 678 in 2023 and 751 in 2024.

In the first half of 2025, the number reached 316.

The countries involved in illegal foreign currency trade have become more diversified.

Until 2022, the United States, Japan and China accounted for more than half of all cases, but their combined share fell to 27 percent in 2024, while cases involving other countries, such as Vietnam, the Philippines, Hong Kong and Mongolia, went up sharply, the data showed.

"Illegal foreign currency trade is often exploited as a means for crimes, such as drug purchases, smuggling and voice phishing. Strong countermeasures are needed," the lawmaker said.

Meanwhile, demand for new coins during traditional holidays has declined markedly amid reduced cash usage and rising prices, central bank data showed on Sunday.

During this year's Lunar New Year holiday in January, the exchange amount for all coin denominations -- 10 won, 50 won, 100 won and 500 won -- was recorded as zero, according to data compiled by the Bank of Korea (BOK).

In comparison, the exchanged amounts for last year's Lunar New Year came to 100,000 won for 10-won coins, 500,000 won for 50-won coins, 2 million won for 100-won coins and 9 million won for 500-won coins.

"The decline is seen as linked to reduced cash usage in general. Rising prices have also affected the demand for coins," a BOK official said.

The BOK issues new coins and banknotes ahead of traditional holidays to meet demand for holiday gifts and symbolic purposes.

—IANS

na/