South Korea Cracks Down on Unreported Crypto Payments by Gaming Giants

Seven major South Korean game companies have been fined by the Korea Customs Service for using cryptocurrency wallets to facilitate international payments without reporting the transactions to foreign exchange authorities.

The firms, including industry giants Krafton and Netmarble, were found to have used crypto wallets for cross-border payments, bypassing the mandatory reporting requirements designed to monitor capital flows and prevent illicit financial activities.

The fines vary by company, reflecting the scale and frequency of the unreported transactions. For example, Krafton was fined tens of millions of South Korean won, while Netmarble received a penalty in the hundreds of millions.

The Korea Customs Service's action marks a significant step in South Korea's broader regulatory push to bring cryptocurrency transactions under existing financial oversight frameworks.