South Korea uncovered illegal foreign exchange transactions amounting to $1.61 billion as it intensified monitoring against such activities due to currency market fluctuations. The Ministry of Finance and Economy disclosed these findings during a meeting with foreign exchange-related agencies in response to concerns over illicit transactions following the Korean won’s recent depreciation against the U.S. dollar.
In the same meeting, the Korea Customs Service reported referring 84 cases of illegal foreign exchange transactions to prosecutors by May. To combat offshore tax evasion and monitor unlawful foreign currency movements, the finance ministry, customs service, and tax agency pledged to enhance collaboration.
Lee Hyung-ryul, the ministry’s director general for international finance, noted a gradual improvement in the foreign exchange market’s supply-demand balance, supported by foreign currency inflows from exporters. He also highlighted South Korea’s anticipated structural shift in foreign currency supply in the latter half of the year, underpinned by robust economic fundamentals, exemplified by a record trade surplus of $138.3 billion in the first half of 2026.
Furthermore, the South Korean government raised its 2026 economic growth forecast to 3%, up by 1 percentage point from the previous projection. This adjustment was attributed to a semiconductor supercycle and reduced uncertainties related to the Middle East. The Ministry of Finance and Economy’s economic policy plan for the second half of 2026 projects growth exceeding the 2.6% estimates by the IMF, OECD, and ADB.
“This marks the initial year of the Lee Jae Myung administration’s full accountability for the nation’s economic management,” stated First Vice Finance Minister Lee Hyoung-il during a press conference in Sejong.
