South Korea currency smuggling has surged dramatically over the past four years, reaching record levels in the first half of 2025. Authorities seized 143.5 billion won ($102.14 million) in illegal foreign currency during January–June. This amount more than doubles the total of 65.5 billion won seized in all of 2024. Lawmakers and officials warn that stronger measures are necessary to curb the growing problem.
Data from the Korea Customs Service shows that illegal currency inflows and outflows have steadily increased. Seizures rose from 14.3 billion won in 2021 to 17.5 billion won in 2022. In 2023, the figure jumped to 46.4 billion won, showing a significant upward trend. Meanwhile, the number of smuggling cases increased steadily from 369 in 2021 to 537 in 2022, 678 in 2023, and 751 in 2024. In the first half of 2025 alone, authorities handled 316 cases.
The scope of South Korea currency smuggling has also expanded internationally. Previously, the United States, Japan, and China accounted for over half of all cases. However, their combined share dropped to 27 percent in 2024. Meanwhile, cases involving countries such as Vietnam, the Philippines, Hong Kong, and Mongolia surged sharply. Analysts say this diversification reflects more sophisticated networks exploiting loopholes in global finance.
Officials warn that South Korea currency smuggling often fuels criminal activities. The illicit funds are used in drug purchases, smuggling operations, and voice phishing scams. Lawmakers stress that authorities must strengthen countermeasures and improve monitoring systems. Without proactive action, the growth of illegal currency trade could threaten both national security and financial integrity.
The main opposition party, led by Rep. Park Sung-hoon, emphasized the need for urgent government intervention. The lawmaker noted that enhanced enforcement, combined with international cooperation, can help curb the rapid rise in smuggling. Authorities are also reviewing policies to detect suspicious transfers and improve reporting by financial institutions.
Overall, South Korea currency smuggling presents a serious and expanding challenge. The trend highlights the need for both domestic vigilance and coordinated global action. Lawmakers and officials continue to stress that strong countermeasures are essential to prevent illegal activity from growing further.
