Contents
1. Case Study-"Just a simple money transfer, but facing criminal charges and risk of deportation?"-Cases about illegal money transfers
2. Violation of the Foreign Exchange Transactions Act(illegal money transfers) — the criteria are divided as follows. Especially for foreigners, legal action may be taken in the following situations.
3. Bigger problems start after criminal sentence
4. Why do we need an assistance from experts?
5. Final Words
1. Case Study-"Just a simple money transfer, but facing criminal charges and risk of deportation?"-Cases about illegal money transfers
No.1
A client of Vietnamese nationality had sent money several times to support their family’s living expenses. However, due to the repeated transactions and the large accumulated amount, they came under investigation for violating the Foreign Exchange Transactions Act. The prosecution sought a fine and even considered deportation. However, with the help of legal counsel early in the case, the client was able to clearly explain the purpose of the remittances and demonstrate that there was no intent to violate the law. Their sincerity was recognized, resulting in a reduced fine and the ability to maintain their residency status.No.2
A client of Chinese nationality lent their bank account to an acquaintance upon request. Later, foreign currency was withdrawn from that account, leading to an investigation for violating the Foreign Exchange Transactions Act. Although the client was not involved in the transactions, they became a subject of investigation simply because they were the account holder. The legal representative provided a detailed explanation of the flow of funds and the circumstances surrounding the account’s use, demonstrating that the client had no intent or involvement in the transactions. As a result, the prosecution issued a “no charges” decision, and the case was closed.2. Violation of the Foreign Exchange Transactions Act(illegal money transfers) — the criteria are divided as follows. Especially for foreigners, legal action may be taken in the following situations.
Sending money for living expenses or briefly lending your account to a friend—Even if these actions stem from personal circumstances, failing to go through the proper reporting or authorization procedures when transferring foreign currency can lead to criminal liability.
1. If foreign currency is taken out of the country or paid without the required declaration, the penalty can be up to 1 year of imprisonment or a fine of up to 100 million KRW.
2. If a report is falsely made or foreign currency is traded without authorization, the offender may be subject to imprisonment for up to 3 years or a fine of up to 300 million won.
3. If you received compensation for a money transfer or repeatedly engaged in similar transactions, even as a first-time offender, there is a possibility of being sentenced to imprisonment or receiving a suspended sentence.
Investigative agencies especially consider the following three criteria when determining the severity of punishment:
① Whether the act was repeated
② Whether there was monetary compensation
③ Whether the act was intentional
If two or more of these factors are acknowledged together, it often results in a harsher sentence.
3. Bigger problems start after criminal sentence
Foreign nationals who have a criminal record for violating the Foreign Exchange Transactions Act or engaging in illegal money transfer often face additional procedures during immigration control.
In particular, the following cases may result in administrative deportation procedures or actual entry restrictions being enforced.
If you are sentenced to a fine of 3 million KRW or more even once, the immigration office is automatically notified, and you become subject to deportation review.
If the total amount of fines exceeds 5 million KRW over the past five years: Even if it's not a single major penalty, exceeding the threshold through accumulated fines can lead to disadvantages.
If you receive a sentence of imprisonment or higher, the punishment itself is classified as a serious offense and may lead to entry restrictions or cancellation of your residence permit.
Separately, the Immigration Office may impose restrictions on routine administrative procedures—such as visa extension denial, limitations on status changes, or refusal to issue new visas—based on the individual's criminal record.
4. Why do we need an assistance from experts?
1. Misunderstandings arising from cultural and institutional differences
In cases where foreigners are involved in illegal money transfer investigations, the issue often stems not merely from the application of legal provisions, but from differences in systems and cultural norms. Many individuals become entangled in such cases simply by naturally accepting requests from acquaintances, without fully understanding the legal procedures involved.2. Burden of Language and Procedures
Documents in Korean, research methods, and immigration control systems can inevitably feel unfamiliar and difficult for foreigners. In that process, the required statements, submission of materials, and legal explanations are also realistically challenging for an individual to handle wisely on their own.3. That’s why expert assistance is essential.
Support from professionals who thoroughly understand Korean law and systems plays a crucial role in overcoming these barriers. A legal representative can help organize the foreign national’s situation from a legal standpoint and provide practical solutions—not only for criminal issues but also for maintaining residency status.
5. Final Words
What seemed like a simple money transfer at first can lead to irreversible administrative consequences. Cases involving illegal money transfers are issues that many foreigners unexpectedly face. Often, it starts with sending living expenses or helping a friend by lending an account. But investigative authorities assess the situation based solely on the structure of the transaction and the remittance process to determine whether a legal violation occurred. If the amount exceeds a certain threshold or if repeated transfers are detected, authorities may presume intent—even if none existed—and pursue criminal charges. However, not all cases end unfavorably. If the facts are clearly organized and the individual’s position is explained early in the process, there have been cases where penalties were reduced and residency status in Korea was preserved. Violations of the Foreign Exchange Transactions Act and illegal money transfers cases affect both criminal and immigration status. Seeking help from legal professionals is often the most practical way to minimize disadvantages. In Majung, A criminal law specialist certified by the Korean Bar Association analyzes the facts and establishes a defense strategy from the early stages of a money transfer case, while a legal representative with experience at the Immigration Office provides integrated support for all immigration-related matters. Foreign Specialized Support at Majung Foreigner Center Multilingual consultation available in English and Chinese. Professional interpreters assist from the first consultation to the conclusion of the case. Offices in Seoul, Daejeon, Busan, Daegu, and GwangjuDon’t face the legal system alone. Let Majung fight for you!
