South Korea has established regulations that every Crypto trading account should have a complete KYC. In my opinion initial coin offerings should also have KYC for every investor to be regulation compliant. Thus, terror financing will reduce to a great extent through cryptocurrency.
South korea is banning ico, They are not allowing their civilians to join in the ico, It may better for you to read more about that. KYC only applied to the centralized exchange site because it can be used to money laundering. The purpose of KYC on exchange site is really different with ICO. In ico you should complete KYC verification to prove if you are not from those countries are banning ico.