South Korea Establishes Payment Suspension Division to Combat New Phishing Crimes

• •South Korea's FIU is creating a Payment Suspension Division to combat new phishing schemes.
• •The division will streamline the process of halting transactions in suspected accounts.
• •Current procedures face delays due to high report volumes, prompting the need for dedicated staff.

South Korea's Financial Intelligence Unit (FIU) will launch a dedicated Payment Suspension Division to quickly halt transactions in accounts suspected of new phishing crimes. This initiative follows consultations with the Ministry of the Interior and Safety, which acknowledged the need for a specialized response to evolving phishing schemes. The division is expected to be staffed by around 10 personnel and will take over the review of accounts suspected of new phishing types that the FIU has managed since June 2026. Current procedures involve financial companies temporarily suspending accounts upon victim reports, with the FIU reviewing these cases within seven business days. The establishment of this division aims to address the backlog of cases and improve response times, as existing staff have struggled to manage the volume of reports. The FIU plans to use Suspicious Transaction Reports (STRs) to assess potential links to criminal activities. Additionally, amendments to relevant laws are being prepared to enhance the FIU's authority in freezing accounts linked to crimes affecting citizens.