Card Industry Limits Overseas ATM Withdrawals with Check Cards... "Concerns Over Cryptocurrency Money Laundering"

[Image source=Yonhap News]

[Asia Economy Reporter Ki Ha-young] Shinhan Card has established a new overseas ATM withdrawal limit for check cards.

Shinhan Card announced on the 25th that starting next month, the overseas ATM withdrawal limit per customer will be capped at $50,000 per month. Previously, the limit was managed at around $10,000 to $20,000 per card per month, but due to the recent rapid increase in overseas ATM withdrawals, the regulations have been tightened. Currently, if a customer has multiple cards, it is possible to withdraw amounts in the hundreds of thousands of dollars.

Earlier, at the end of last month, Hana Card also strengthened its overseas ATM withdrawal limit from $10,000 per card per month to $10,000 per customer per month. NH Nonghyup Card reduced its overseas ATM withdrawal limit from $20,000 to $10,000 per card per month.

The reason for the increase in foreign currency withdrawals via overseas ATMs is unclear, but some attribute it to overseas transactions exploiting the price gap in virtual assets between domestic and international markets. It is known that illegal foreign exchange transactions, commonly called "hwan-chigi," or illegal foreign currency outflows aimed at purchasing virtual assets overseas to profit from the so-called "Kimchi Premium" arbitrage, are on the rise.

This content was produced with the assistance of AI translation services.