{"id":33494,"date":"2022-08-16T01:43:53","date_gmt":"2022-08-16T05:43:53","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=33494"},"modified":"2022-08-16T01:43:57","modified_gmt":"2022-08-16T05:43:57","slug":"korean-regulators-look-into-banks-linked-to-6-5b-kimchi-premium","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/korean-regulators-look-into-banks-linked-to-6-5b-kimchi-premium\/","title":{"rendered":"Korean regulators look into banks linked to $6.5B Kimchi premium"},"content":{"rendered":"\n
South Korean financial watchdogs are investigating the enormous quantity of money sent outside from cryptocurrency exchanges.<\/h5>\n\n\n\n
\"Korean
Korean regulators look into banks linked to $6.5B Kimchi premium<\/figcaption><\/figure>\n\n\n\n

Investigations are being conducted into South Korean banks' possible complicity in the $6.5 billion in shady international transfers that have been linked to businesses that deal in cryptocurrency arbitrage\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>.<\/p>\n\n\n\n

The Financial Supervisory Service (FSS) reportedly authorized a probe into South Korean banks last month after discovering a sizable number of international remittance transactions at the end of June, according to an Asia Times report from August 15.<\/p>\n\n\n\n

According to the research, the majority of the $6.5 billion transported outside between January 2021 and June 2022 originated in cryptocurrency exchange accounts before being transmitted abroad, indicating certain Korean businesses are taking advantage of the “Kimchi premium (kimp).”<\/p>\n\n\n\n

The difference in cryptocurrency prices between South Korean exchanges<\/a> and overseas exchanges is known as the Kimchi premium. Investors purchase cryptocurrencies from foreign exchanges and then resell them for a profit on local Korean platforms.<\/p>\n\n\n\n

The trade of premium kimchi has raised concerns among regulators because it facilitates capital flight out of the nation.<\/p>\n\n\n\n

Market watcher CryptoQuant said the kimchi premium is currently only +3.37 percent, while it was above +20 percent as recently as last April.<\/p>\n\n\n\n

According to Shinhan Bank and Woori Bank reports, the majority of the money sent overseas was first moved from domestic cryptocurrency exchanges to various corporate accounts held by Korean businesses<\/a>.<\/p>\n\n\n\n

An article published on August 15 by the regional news source Asia Times stated that these big remittances have generated concerns that investors are utilizing sizable quantities of money to take advantage of the Kimchi premium.<\/p>\n\n\n\n

According to the KBS news station on August 14, some personnel from the undisclosed organizations performing the remittances have been detained, raising suspicions that the funds being transferred are being used for money laundering.<\/p>\n\n\n\n

When the FSS asked banks to investigate, the total amount moved abroad was more than twice what they anticipated to learn. The FSS is now anticipated to carry out additional on-site checks of local banks, which may find more cash that has been remitted, according to the Asia Times.<\/p>\n\n\n\n

Because they permitted the most remittances, Shinhan and Woori are now anticipated to face punishment from the FSS. Sanctions are unavoidable since we are taking the foreign exchange transaction seriously, according to Asia Times'<\/a> report on FSS chairman Lee Bok-Hyeon.<\/p>\n\n\n\n

Shinhan and Woori have ongoing investigations, but they will be finished on August 19.<\/p>\n","protected":false},"excerpt":{"rendered":"

South Korean financial watchdogs are investigating the enormous quantity of money sent outside from cryptocurrency exchanges. Investigations are being conducted into South Korean banks’ possible complicity in the $6.5 billion in shady international transfers that have been linked to businesses that deal in cryptocurrency arbitrage . The Financial Supervisory Service (FSS) reportedly authorized a probe […]<\/p>\n","protected":false},"author":38,"featured_media":33500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1315],"class_list":["post-33494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-korean"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/08\/South-Korea-cryptocurrency-regulations.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=33494"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/33500"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=33494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=33494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=33494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}