South Korean Authorities Deploy Investigation Linking to Bitcoin\'s "Kimchi Premium"

Law enforcement agencies in South Korea, as part of a major investigation by the Financial Supervisory Service (FSS), are checking cases of illegal bitcoin trading. This heightened scrutiny centers around the infamous "Kimchi Premium," where Bitcoin trades at a significantly higher price on South Korean exchanges compared to global markets.

Prosecutors in South Korea are reportedly investigating foreign remittances of over 2 trillion Korean won (US$1.5 billion) at the country’s banks on suspicions of money laundering and illegal financial activities. The investigation is focusing on whether these remittances are connected to exploiting the Kimchi Premium.

Overseas remittances totaling over $6.5 billion came from crypto exchanges before being sent out of the country, suggesting “Kimchi premium” trading. This large-scale movement of funds has triggered alarms, prompting authorities to delve deeper into the potential misuse of cryptocurrency for illicit financial gains.

South Korea’s integrated financial regulator – Financial Supervisory Service (FSS) – is reportedly investigating domestic and commercial banks after detecting a significant increase in suspicious foreign exchange transactions. This extensive investigation aims to uncover any irregularities or illegal activities facilitated by these banks related to the Kimchi Premium phenomenon.

The investigation is crucial in understanding the full scope of the illegal activities surrounding Bitcoin and the Kimchi Premium. South Korean authorities are committed to clamping down on illicit financial practices and ensuring the integrity of the financial system.