[Exclusive] Virtual asset underground remittances worth 3.7 trillion won…90% 'perpetrated by Chinese nationals'

28 cases sent to the prosecution over 8 years

Mostly tax evasion and money laundering

Urgent need to establish a monitoring system for foreigners

Over the past eight years, the scale of foreign nationals' virtual asset 'underground remittance' crimes detected by authorities amounted to KRW 3.7 trillion. Looking at the nationalities of those who committed the crimes, 80% or more were Chinese nationals. As virtual assets have recently been used to launder criminal proceeds in Cambodia, there are calls to establish a systematic monitoring system.

On the 20th, according to data submitted by Rep. Park Soo-young of the People Power Party from the Korea Customs Service, from 2018 until last August, the number of detected cases of foreign nationals' virtual asset underground remittance (based on prosecutions sent) was a total of 28 cases, and by amount it amounted to KRW 3 trillion 7,500 won. By amount, China accounted for KRW 3.1544 trillion (84.1%), the most. Next were Australia (KRW 417 billion, 11.1%), Vietnam (KRW 121 billion, 3.2%), and Russia (KRW 58.3 billion, 1.6%). In terms of number of cases, 25 cases, or 89.2%, were crimes committed by Chinese nationals.

Underground remittance refers to a method of moving foreign currency between Korea and foreign countries without going through banks. Underground remittance is often abused for purposes such as tax evasion or money laundering. Rep. Park pointed out that crimes by foreign nationals using virtual assets for underground remittance are increasing sharply. The number of detected foreign-national underground remittance cases was 0 in 2017 and only 1 in 2019, but surged to 7 cases (KRW 432 billion) in 2021. Thereafter, the amounts increased to KRW 836 billion in 2023 and KRW 956 billion in 2024, showing a trend of growing crime scale.

The share of foreign nationals in total virtual asset underground remittance crimes has also risen. In particular, last year, 5 out of 10 cases (50%), and by amount, KRW 956 billion out of KRW 1.0575 trillion (90.4%) were committed by foreigners. Rep. Park emphasized, "The actual scale of underground remittance is likely much larger than the amount detected by the Korea Customs Service," and added, "The government must establish a whole-of-government response system to address disruption of foreign exchange order and capital outflows caused by virtual assets."

Reporter Jeong So-ram ram@hankyung.com