South Korea Country Summary

FATF Status

South Korea is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in South Korea was undertaken by in 2024. According to that Evaluation, South Korea was deemed Compliant for 13 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 5 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

South Korea has implemented a range of systematic measures to combat corruption, including mandatory asset disclosures for high-ranking officials and the establishment of the Anti-Corruption and Civil Rights Commission (ACRC) to oversee national initiatives. Despite these efforts, political corruption remains a significant issue, with several former presidents convicted of related offenses, highlighting ongoing challenges in maintaining integrity within public office.

In terms of crime resilience, the South Korean government demonstrates a commitment to fighting organized crime through effective law enforcement and judicial systems, which are capable of investigating and prosecuting criminal activities. Additionally, the country has robust anti-money laundering measures and support systems for victims and witnesses, indicating a proactive approach to enhancing public safety and reducing the impact of organized crime.

South Korea's economy presents a robust investment climate characterized by political stability, public safety, and a highly skilled workforce, making it an attractive destination for foreign investors. The country has seen a steady increase in foreign portfolio investment since the liberalization measures of the 1990s, with foreign holdings exceeding 32% of the Korea Composite Stock Price Index (KOSPI) as of July 2025. However, challenges remain, including a complex regulatory framework and competition from low-cost producers, particularly from China, prompting the government to implement reforms aimed at enhancing transparency and reducing barriers for foreign investment.