South Korea Faces Drug Smuggling Epidemic with 18% Increase Tied to Cryptocurrency and Telegram

Crypto-Catalysed Surge in Drug Smuggling

South Korean Customs officials have reported a striking increase in drug smuggling linked to the rising use of cryptocurrencies.

In 2023, authorities intercepted 769 kilograms of narcotics, an 18% increase from the 624 kilograms seized in 2022.

Drugs confiscated by authorities are displayed at a prosecutor's office in Incheon, 27 kilometers west of Seoul, on January 12. (Source: Yonhap)

This escalation highlights the growing role of digital currencies like Bitcoin and various altcoins in facilitating illicit transactions.

The Korea Customs Service attributes this surge to the proliferation of non-face-to-face transactions, which have become more common due to the adoption of virtual currencies.

The Impact of Digital Currencies on Drug Trafficking

The Korea Customs Service has noted that the high domestic prices for drugs in South Korea compared to other countries are driving the increase in smuggling attempts.

They elaborated,

“Drug smuggling attempts are continuing due to the high domestic drug prices compared to other countries. The spread of non-face-to-face transactions [using] virtual currency is also causing this increase.”

In this evolving scenario, Telegram and other social media platforms have become critical tools for drug dealers.

They advertise their products and demand payments in cryptocurrencies, complicating efforts by authorities to trace these transactions.

Drugs Concealed as International Mail

A significant portion of the drugs seized in 2023 was intercepted through various channels.

Customs officials found 327 kilograms of narcotics concealed in international mail shipments, 275 kilograms hidden in express cargo, and 148 kilograms confiscated from travellers arriving in South Korea.

Cocaine seized during an attempt to smuggle it into South Korea is displayed at a briefing on August 19 at the Korea Coast Guard's Incheon headquarters. (Source: Yonhap)

The drugs mainly consisted of methamphetamines, ketamine, marijuana, and cocaine.

The authorities’ efforts in cracking down on these smuggling routes underscore the expanding role of cryptocurrency in the drug trade.

The Dangerous Combination of Telegram and Cryptocurrency

Dealers are increasingly leveraging encrypted messaging apps like Telegram to conduct their illicit trades.

They often advertise their services on platforms such as X (formerly Twitter) and the dark web, requesting payments in Bitcoin and other cryptocurrencies.

After receiving the payment, they typically employ a "dead-drop" method, leaving the drugs in public places for buyers to retrieve.

This approach makes it exceedingly difficult for law enforcement to track and apprehend those involved in these transactions.

In addition to the drug-related issues on Telegram, South Korea is grappling with a rising epidemic of deepfake pornography being circulated through the messaging app.

Ongoing Challenges and Legislative Responses

The situation continues to escalate into 2024, with 377 kilograms of drugs already seized in the first half of the year, representing nearly half of the previous year's total.

Lawmakers, including Jeon Yong-gi, are voicing urgent calls for more stringent measures to combat this growing problem.

Jeon emphasised,

“Law enforcement agencies need to take control of this situation so that drugs do not become an everyday thing [in South Korea].”

His comments reflect growing concerns about the rising tide of drug smuggling and the effectiveness of current enforcement strategies.

The Ripple Effect of Cryptocurrency on Drug Trafficking

Data analysed from multiple sources, including the Korea Customs Service and the Incheon International Airport Corporation, reveals the extent of the crisis.

Last year, authorities seized narcotics worth $45.6 million, with the majority intended for sale through Telegram channels.

This crypto-driven narcotics “epidemic” demonstrates a troubling shift in how drugs are traded and reflects the need for enhanced regulatory measures to address this evolving threat.

Telegram CEO's Arrest Highlights Growing Concerns

The recent arrest of Telegram CEO Pavel Durov at Le Bourget Airport near Paris has added another layer to the discourse surrounding the platform’s role in illicit activities.

Durov’s arrest is part of an investigation into the lack of effective moderation on Telegram, which has reportedly allowed criminal activities to proliferate unchecked.

The concerns about Telegram's role in facilitating drug transactions highlights the broader issue of how digital platforms and cryptocurrencies are being exploited by criminals.

The Urgent Need for Enhanced Control

As South Korean officials grapple with the growing influence of cryptocurrencies in drug trafficking, the need for robust countermeasures becomes ever more apparent.

With drug smuggling operations becoming increasingly sophisticated and harder to trace, the intersection of digital currencies and illicit activities presents a formidable challenge for law enforcement agencies.

The persistent rise in drug seizures and the associated difficulties in tracking transactions underscore the critical need for innovative solutions to curb this burgeoning problem.