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South Korea Launches Cross‑Border QR Payments with Indonesia and Tightens AML Regulations

Updated (5 articles)
  • Bank of Korea (BOK) Gov. Rhee Chang-yong (R) and his Indonesian counterpart, Perry Warjiyo, pose for a photo during a signing ceremony for the renewal of the South Korea-Indonesia currency swap arrangement in Seoul on Feb. 5, 2026, in this photo provided by the BOK. (PHOTO NOT FOR SALE) (Yonhap)
    Image: Yonhap
    Bank of Korea (BOK) Gov. Rhee Chang-yong (R) and his Indonesian counterpart, Perry Warjiyo, pose for a photo during a signing ceremony for the renewal of the South Korea-Indonesia currency swap arrangement in Seoul on Feb. 5, 2026, in this photo provided by the BOK. (PHOTO NOT FOR SALE) (Yonhap) Source Full size
  • This image shows the logo of the Financial Intelligence Unit (FIU), South Korea's anti-money laundering agency. (Yonhap)
    Image: Yonhap
    This image shows the logo of the Financial Intelligence Unit (FIU), South Korea's anti-money laundering agency. (Yonhap) Source Full size
  • This image shows the logo of the Financial Intelligence Unit (FIU), South Korea's anti-money laundering agency. (Yonhap)
    Image: Yonhap
    This image shows the logo of the Financial Intelligence Unit (FIU), South Korea's anti-money laundering agency. (Yonhap) Source Full size

Cross‑Border QR System Begins April 2026 South Korea and Indonesia will activate a QR‑code payment network in April, allowing travelers to pay in local currency without foreign‑exchange conversion at physical stores in both nations [1]. The service stems from a July 2024 memorandum of understanding that created a local‑currency transaction framework, enabling payments to be settled in won or rupiah rather than a third currency [1]. Bank of Korea Governor Rhee Chang‑yong and Bank Indonesia Governor Perry Warjiyo highlighted expectations of lower FX fees and broader bilateral benefits for trade, tourism, and consumption, and announced plans to extend the QR system to online commerce and additional ASEAN members [1].

Financial Services Commission Proposes AML Legal Overhaul On Feb 5, 2026, South Korea’s Financial Services Commission disclosed a package of legislative changes granting the Financial Intelligence Unit authority to freeze accounts suspected of facilitating crimes such as drug trafficking and illegal gambling [2]. The revisions will allow transnational criminal groups to be designated for financial transaction restrictions, tighten the crypto travel rule for trades above 1 million won, and introduce a dedicated AML regime for stable‑coin transactions [2]. The FSC also pledged deeper cooperation with Asian partners—including China, Singapore, and Cambodia—to share information and harmonize anti‑money‑laundering policies [2].

Combined Initiatives Aim to Boost Trade, Tourism, and Security The QR payment launch and AML reforms are presented as complementary steps to strengthen South Korea’s regional financial integration and security posture. By eliminating currency‑conversion costs, the QR system is expected to stimulate cross‑border consumer spending, while the tightened AML framework seeks to protect the same transaction channels from illicit use [1][2]. Both BOK and FSC officials emphasized ongoing collaboration with neighboring economies, signaling a coordinated strategy to expand digital payment infrastructure and enforce stricter compliance standards across Southeast Asia.

Sources

Timeline

Sep 2021 – A crypto‑laundering scheme starts, with suspects buying cryptocurrency abroad, moving it to South Korean wallets, converting to won and routing through domestic bank accounts, laying the groundwork for a later 150 billion‑won illicit flow [3].

July 2024 – The Bank of Korea and Bank Indonesia sign a memorandum of understanding establishing a local‑currency transaction framework that will later enable cross‑border QR payments in each nation’s own currency, bypassing foreign‑exchange conversion [1].

June 2025 – The laundering operation ends, having moved about 148.9 billion won through expense disguises such as cosmetic surgery and overseas study, highlighting vulnerabilities in monitoring cross‑border crypto flows [3].

Dec 2, 2025 – A Seoul court acquits a broker of North‑Korean‑defector remittances; the Unification Ministry calls for a balanced legal‑humanitarian approach, signalling a policy shift under President Lee Jae‑Myung’s administration [5].

Dec 8, 2025 – South Korea lifts the paperwork ceiling on overseas remittances to US $100,000 per transaction for all financial institutions, with the new Overseas Remittance Integration System set to monitor compliance from 2026 onward [4].

Jan 19, 2026 – Korea Customs Service refers three Chinese nationals to prosecutors for violating the Foreign Exchange Transactions Act in connection with the 150 billion‑won crypto‑laundering ring, marking the first criminal referrals in the case [3].

Feb 5, 2026 – The Financial Services Commission announces plans to amend law granting the Financial Intelligence Unit authority to freeze suspect accounts and to tighten the crypto travel rule for trades over 1 million won, aiming to curb transnational money‑laundering networks [2].

Feb 5, 2026 – The Bank of Korea confirms that the cross‑border QR payment service will launch in April 2026, allowing travelers to pay in local currency via QR codes, and pledges future expansion to online commerce and additional ASEAN members [1].

April 2026 (planned) – The QR‑code payment system goes live at physical stores in South Korea and Indonesia, expected to reduce foreign‑exchange fees and boost tourism and trade between the two economies [1].

2026 (future) – The BOK intends to extend the QR system to online payments and to other ASEAN countries, further deepening regional digital‑payment integration [1].

2026 (ongoing) – The revised AML framework for stablecoins and high‑value crypto transactions takes effect, giving the FIU new tools to monitor and freeze illicit digital‑asset flows [2].

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