South Korea Customs Seizes $102M in ‘Medical Tourism’ Crypto Laundering Ring
Seoul customs officials arrested three nationals for washing 148.9 billion won through cosmetic surgery receipts, part of a wider crackdown on a $290 billion trade data discrepancy.
South Korean customs authorities have dismantled a 148.9 billion won ($101.7 million) cryptocurrency laundering operation that disguised illicit capital flows as cosmetic surgery fees and tuition payments. The Korea Customs Service (KCS) referred three Chinese nationals to prosecutors Monday for violating the Foreign Exchange Transactions Act, marking another escalation in Seoul’s crackdown on unauthorized forex bureaus.
The ‘Medical Tourism’ Facade
Operating from September 2021 to June 2025, the syndicate allegedly exploited South Korea’s reputation as a medical tourism hub to evade capital controls. According to Yonhap News, the suspects received funds via WeChat Pay and Alipay from clients, likely Chinese nationals seeking to move capital abroad. These funds were used to purchase cryptocurrency in various jurisdictions, transferred to South Korean digital wallets, and liquidated for Korean won.
The perpetrators leveraged sectors such as medical tourism and education, which naturally involve large and irregular international transfers. This made the transactions appear routine and allowed them to evade early detection.
To mask the origin of the funds, the group generated false receipts for cosmetic procedures and study-abroad expenses. The liquidated won was then dispersed across numerous domestic bank accounts to avoid triggering Financial Intelligence Unit (FIU) thresholds.
The $290 Billion ‘Ghost Gap’
This enforcement action addresses a systemic discrepancy in South Korea’s trade data. KCS officials recently flagged a massive $290 billion gap between foreign exchange transaction reports and actual customs clearance data in 2025. This divergence serves as a primary indicator of illegal foreign exchange arbitrage (known locally as “hwanchigi”), where crypto is often the settlement layer.
Market Context: The Chill Sets In
The bust comes as South Korea’s crypto market faces a severe contraction under tightening regulations. Daily trading volume on the country’s top five exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) has plummeted over 80% year-over-year as of January 18. Simultaneously, Bitcoin struggled to hold the $94,000 level in Monday trading, reflecting broader risk-off sentiment as regulatory oversight intensifies.
