Seoul, Oct 5 – Illegal foreign‑currency trade in South Korea has jumped dramatically, with officials saying the volume of seized money has surged more than ten‑fold over the last four years and hit a record high in the first half of 2025.
According to data from the Korea Customs Service, authorities seized 143.5 billion won (about US$102 million) between January and June 2025 – more than twice the 65.5 billion won seized for the full year of 2024. Seizure totals have climbed steadily: 14.3 billion won in 2021, 17.5 billion won in 2022 and 46.4 billion won in 2023.
The number of illegal‑currency cases has also grown:
- 369 cases in 2021
- 537 in 2022
- 678 in 2023
- 751 in 2024
- 316 in the first half of 2025
The mix of countries involved is shifting. Until 2022, the U.S., Japan and China accounted for over half of all cases. In 2024, they shared only 27 % of the cases, while incidents involving Vietnam, the Philippines, Hong Kong and Mongolia spiked sharply.
Lawmaker Park Sung‑hoon of the People Power Party warned that this trade often supports drug purchases, smuggling and voice‑phishing scams, calling for stronger enforcement.
Cash usage falls, and coin demand drops hits
The Bank of Korea reports a sharp fall in coin exchanges during traditional holidays, echoing a broader decline in cash usage and rising prices. During the Lunar New Year holiday in January 2024, exchanges for all coin denominations – 10‑won, 50‑won, 100‑won and 500‑won – were reported as zero.
Last year’s Lunar New Year saw much higher numbers:
| Coin | Amount exchanged |
|---|---|
| 10‑won | 100,000 won |
| 50‑won | 500,000 won |
| 100‑won | 2 million won |
| 500‑won | 9 million won |
A Bank of Korea official said the drop connects to people holding less cash in general and the impact of rising prices on everyday spending. The central bank still issues new coins and banknotes before major holidays to meet demand for gifts and symbolic use.
Key takeaways
- Illegal foreign‑currency seizures in Korea have more than doubled compared to 2024 and topped a record in early 2025.
- The number of cases and the diversity of source countries are rising, raising concerns about money‑laundering and illicit trade.
- Cash usage remains on a downtrend, reflected in the near‑zero exchange of coins during Lunar New Year festivities.
These trends highlight growing challenges for Korea’s financial regulators and law‑enforcement agencies in curbing illegal currency flows and protecting consumers against cash‑based crime.
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