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 systematic measures to combat corruption, including asset disclosure requirements for high-ranking officials and the establishment of the Anti-Corruption and Civil Rights Commission. Despite these efforts, challenges remain in effectively enforcing anti-corruption laws, as evidenced by high-profile political scandals involving former presidents and ongoing public concern regarding government integrity.

In terms of crime resilience, the South Korean government demonstrates a strong commitment to addressing organized crime through efficient 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, highlighting the active role of civil society in complementing government initiatives against crime.

The Republic of Korea (ROK) presents a compelling investment landscape characterized by political stability, a robust infrastructure, and a highly skilled workforce, making it an appealing destination for foreign investors. Despite these advantages, the ROK faces challenges in attracting foreign direct investment (FDI), primarily due to a complex regulatory environment that hinders transparency and consistency. Recent government initiatives, such as the establishment of a Foreign Investment Ombudsman and a regulatory sandbox program, aim to enhance the investment climate, yet foreign investors still encounter significant hurdles, including high labor costs and market dominance by large conglomerates known as chaebols.