S. Korea uncovers forex crimes worth $1.61 billion through May

Seoul, July 14 (IANS) South Korea detected 2.4 trillion won ($1.61 billion) worth of illegal foreign exchange transactions through May as the country stepped up surveillance against related crimes amid the volatility in the currency market, the finance ministry said on Tuesday.

The Ministry of Finance and Economy announced the findings during a meeting with foreign exchange-related agencies amid growing concerns over illegal transactions following the Korean won’s recent slide against the U.S. dollar.

During the meeting, the Korea Customs Service said it had referred a total of 84 cases involving illegal foreign exchange transactions to prosecutors through May, reports Yonhap news agency.

The finance ministry, the customs service and the tax agency also vowed to strengthen coordination to root out offshore tax evasion and track illicit foreign currency flows.

Lee Hyung-ryul, director general for international finance at the ministry, said the supply-demand balance in the foreign exchange market is gradually improving, supported by foreign currency inflows from exporters.

Lee added that South Korea is expected to undergo a structural shift in foreign currency supply in the second half, supported by its strong economic fundamentals, as demonstrated by a record trade surplus of US$138.3 billion in the first half of 2026.

Meanwhile, the South Korean government on Tuesday revised up its economic growth projection for 2026 to 3 percent, up 1 percentage point from its previous outlook, citing a semiconductor supercycle and easing uncertainties surrounding the Middle East.

The Ministry of Finance and Economy released its economic policy plan for the second half of 2026, presenting a forecast above the 2.6 percent estimates issued by the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) and the Asian Development Bank (ADB).

“This is the first year in which the Lee Jae Myung administration is taking full responsibility for the country’s economic management,” First Vice Finance Minister Lee Hyoung-il said during a press conference held in the central city of Sejong.

—IANS

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