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Korean banks in Cambodia freeze Prince Group deposits per sanctions

Published: 20 Oct. 2025, 17:57 Updated: 20 Oct. 2025, 19:34

Commuters drive past Prince Bank in the Prince Group headquarters building in Phnom Penh, Cambodia on Oct. 19. [YONHAP]

Banks in Cambodia operated by Korean lenders have frozen deposits held by Prince Group, a Cambodian conglomerate under international sanctions for alleged involvement in human trafficking, illegal confinement and voice phishing schemes.

The move comes ahead of any official directive from Korean financial authorities, in accordance with international sanctions, as banks opted to preemptively restrict the group’s access to funds.

Given Prince Group’s suspected criminal activities, many observers believe the funds in question are likely illicit in origin. However, Korea's financial regulators have yet to impose formal sanctions due to potential diplomatic implications.

As of Monday, the group’s deposits remain in the local branches of four Korean banks operating in Cambodia: KB Kookmin Bank, Jeonbuk Bank, Woori Bank and Shinhan Bank. The total amount of the frozen deposits stands at 91.2 billion won ($64.2 million).

All of these deposits were frozen as of Wednesday. “After the U.S. Treasury’s Office of Foreign Assets Control designated Prince Group for sanctions, Korean banks moved to freeze the funds held in their Cambodian branches based on this guidance,” a financial authority official said.

The Taiza Complex near Phnom Penh, Cambodia, is known as a criminal compound operated by Prince Group. [YONHAP]

Five Korean banks had conducted a total of 52 transactions with Prince Group through their Cambodian branches, according to data obtained by conservative People Power Party Rep. Kang Min-kuk, a member of the National Policy Committee. The total value of these transactions amounted to approximately 197 billion won.

Jeonbuk Bank had the highest transaction volume, having handled 47 fixed deposit transactions worth 121.7 billion won.

Of the remaining deposits, KB Kookmin Bank held the largest amount at nearly 56.7 billion won, followed by Jeonbuk Bank with almost 26.9 billion won, Woori Bank with 7.021 billion won, and Shinhan Bank with 645 million won.

“Under international antimoney laundering agreements, once sanctions are imposed by the global community, participating banks are required to automatically freeze the affected accounts,” said a bank sector source. All activity, including deposits and withdrawals, is prohibited from these frozen accounts.

A screenshot of the Prince Real Estate Group’s official website [SCREEN CAPTURE]

The U.S. and British governments have already imposed joint sanctions on Prince Group and its chairman, Chen Zhi. Korea’s Financial Intelligence Unit, under the Financial Services Commission, is reportedly in discussions with the Ministry of Foreign Affairs to consider domestic sanctions on Cambodian criminal organizations, including Prince Group.

However, no final decision has been made due to diplomatic sensitivities. Some argue that delaying sanctions any further may be inappropriate now that private banks have already taken action in line with international norms.

“Only the National Security Council can authorize financial sanctions, following consultations with the Ministry of Foreign Affairs,” said a financial source. “Once approved, sanctions can be applied to all domestic and overseas branches of Korean banks, as well as to Korean branches of foreign banks.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM NAM-JUN [[email protected]]