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South Korea is pumping in $9.1 million into building a new system that tracks drug dealers on the dark web by following their cryptocurrency payment trails.
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The crackdown comes after drug trafficking cases increased 46% and drug seizure surged 321% in 2025.
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This follows a global trend where illegal crypto transactions reached a peak of $158 billion, with dark web drug sales playing a big part.
South Korea is cracking down on online drug sales. They are launching an advanced technology that will help hunt down traffickers using cryptocurrency and hidden internet sites.
The government is budgeting millions on new tools for police. They aim to tear down the anonymity shielding these criminal networks.
Details of South Korea’s New Crackdown on Darknet Drug Peddlers
On February 4th, South Korea announced a new project to crack down on drug dealing on the darknet. The country’s Ministry of Science and ICT will be working with the policy to develop an integrated system for investigating these illegal activities.
The project budget is 13.2 billion won (about $9.1 million), and the funds will be used to develop advanced analysis tools for the police. A project assignment contest will be held before March 3rd this year.
Officials say advanced technology is now essential. Criminals have evolved. They now mix anonymous dark web markets with encrypted apps like Telegram. They then use virtual assets for payment.
Oh Dae-hyun is the Director General of Future Strategy and Technology Policy. He stated that securing advanced analysis tech is critical. It is the only way to counter these new crime types. The government will use science to strengthen its response.
What Prompted this Development
The drive for this system is not coming from nowhere. Two powerful forces are behind it. First, there is intense global pressure to fight drug networks. The United States is urging governments worldwide to act.
Second, the problem in South Korea has exploded. Data from Korea’s Customs Service shows there’s been a significant rise in drug trafficking, with over 3,318 kilograms of drugs seized in 1,256 separate cases last year.
What’s more shocking is the 45% year-over-year increase in cases recorded, plus a 321% rise in the total weight of illegal substances seized. This dramatic spike is directly linked to new methods.
Traffickers are ditching traditional street deals. They now operate on the dark web. South Korean authorities are already grappling with sophisticated dark web criminality, as demonstrated by their recent bust of a major dark web spy ring that had hacked over 120,000 IP cameras. Buyers make payments using privacy coins like Monero that are hard to trace, making it difficult for law enforcement to investigate the crimes.
A Global Problem Hits Home
South Korea’s struggle mirrors a worldwide issue. Blockchain analysis firm TRM Labs’ recent report confirms this. The report stated that the volume of illicit cryptocurrency transactions reached a new all-time high in 2025.
The total value hit about $158 billion last year. A significant portion fuels dark web drug markets. The report notes Western sanctions also play a role. Sanctions push some actors toward crypto for moving value. This technology, unfortunately, also enables drug syndicates. The anonymous nature of these transactions is a huge challenge.
South Korea’s new project will last three years. It will bring tech experts together. They will research ways to analyze dark web posts and link them to crypto transactions. This specialized effort runs parallel to the need to defend against other pervasive digital threats, such as the ransomware attack that recently targeted Inha University, which highlights the multifaceted nature of the country’s cybersecurity challenges.
Profiling and “doxxing” of the traffickers will be the end goal. The trafficking sites will be infiltrated with a goal of deanonymizing their online boltholes, leading to the identification of the traffickers. South Korea has made it very clear that drug trafficking will be met with zero tolerance in both the online and offline worlds.
South Korea is also committing major resources to combating crime in this digital era. When it comes to this fight, the criminals’ anonymity is no longer guaranteed.
