Prosecution to Investigate Abnormal Forex Transactions

The Financial Supervisory Service recently investigated 1.3 trillion won and 800 billion won foreign exchange transactions at Shinhan and Woori Banks, respectively. According to the agency, the abnormal transactions were related to arbitrage cryptocurrency trading, and it sent the cases to the prosecution.

“The traders sent cryptocurrencies to domestic exchanges a couple of years ago, when the so-called kimchi premium reached its peak, and they recently attempted to send their arbitrage trading profits to Japan and China,” it explained.

“The traders disguised their remittances as import settlements and they mobilized three and five companies in doing so at Woori and Shinhan, respectively,” the agency added.