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.

The Republic of Korea (ROK) has implemented various measures to combat corruption, including the Public Service Ethics Act, which mandates asset disclosure by high-ranking officials, and the Anti-Corruption and Civil Rights Commission (ACRC), which oversees anti-corruption initiatives. Despite these efforts, challenges remain, as evidenced by the 2016-2017 corruption scandal involving former President Park Geun-hye, which led to her impeachment and subsequent imprisonment. The ROK continues to strengthen its anti-corruption laws, including the Kim Young-ran Act, which restricts gift-giving to public officials, and has seen increased enforcement of these regulations.

South Korea's economy is characterized by its political stability, advanced infrastructure, and a highly skilled workforce, making it an attractive destination for foreign investment. Despite these advantages, the country struggles to attract foreign direct investment (FDI) due to a complex regulatory environment and competition from lower-cost producers like China. The government has implemented measures to improve the investment climate, including the establishment of a Foreign Investment Ombudsman and a regulatory sandbox program.

South Korea is an appealing destination for foreign investment, characterized by political stability, a skilled workforce, and advanced infrastructure. However, the country struggles to attract foreign direct investment due to a complex regulatory environment and high operational costs, despite government initiatives like the Foreign Investment Ombudsman and regulatory sandboxes aimed at improving conditions for investors.