Prosecutors Indict 20 Suspects for Illegal Remittance of 4 Trillion Won Targeting Coin 'Kimchi Premium'

[Asia Economy Reporter Kim Hyung-min] A group that illegally remitted foreign currency worth about 4 trillion won overseas, targeting the so-called 'Kimchi Premium' where domestic virtual asset exchange rates are higher than overseas exchanges, has been brought to trial.

The International Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Na Uk-jin) and the Investigation Division 2 of Seoul Main Customs (Director Lee Min-geun) announced on the 18th that they have arrested and indicted 11 people, including the mastermind and brokers of the illegal overseas remittance, on charges of violating the Foreign Exchange Transactions Act and bribery under the Act on the Aggravated Punishment of Specific Crimes, and indicted 9 others without detention.

Seoul Central District Prosecutors' Office
[Image source=Yonhap News]

It was investigated that from January 2021 to August last year, they collected money from 256 accounts and illegally remitted a total of about 4.3 trillion won overseas, including Hong Kong.

In the process, they disguised the remittance as payment for trade to avoid detection by financial authorities. They also operated about 20 paper companies disguised as trading companies to smoothly remit large sums of money.

It was found that they purchased virtual assets on overseas coin exchanges with the remitted money and transferred them to domestic coin exchanges to sell at prices with the 'Kimchi Premium.' The profits were shared with the fund providers.

It was also investigated that they gave a bribe of 20 million won to a broker who was a former bank employee, aiming for help in opening accounts or preferential exchange rates.

The prosecution estimates that since the Kimchi Premium was about 3 to 5% at the time of the crime, the price difference profit they earned is expected to be about 120 billion to 210 billion won. They are currently proceeding with confiscation and seizure preservation procedures for the 13.1 billion won of criminal proceeds identified so far.

The prosecution plans to continue the investigation, keeping open the possibility of additional accomplices, and has issued a wanted notice for overseas mastermind A, who has not been apprehended.

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