Baltimore signed Yoon to a three-year, $5.575 million deal in February 2013 and will save $4.3 million in salary.
He was scheduled to make $1.75 million this season and $2.4 million in 2016. He made $1.425 million in 2014 despite never reaching the majors. Yoon was removed from the Orioles' 40-man roster in August and outrighted to Triple-A Norfolk.
"We thought that Suk-min Yoon could develop into a decent pitcher here, but it didn't work out," Orioles executive vice president Dan Duquette said. "Some of them are going to work and some of them aren't going to work. The good thing about this is that this didn't work, but we were able to correct a mistake, if you will, and we'll have that money available to invest in other players."
After his release, Yoon signed a four-year deal with the Kia Tigers of the Korean Baseball Organization in South Korea. He spent nine years with Kia and was a three-time All-Star in the KBO before signing with the Orioles.
Duquette said Moon requested his release nearly a month ago after he was not invited to spring training, despite having a contract with the team.
Yoon, 28, went 4-8 record with a 5.74 ERA in 23 appearances with with Triple-A Norfolk last season.
"He's going to be fine," Orioles manager Buck Showalter said. "[I] wish him well. ... It worked out well for him. And us, for that matter."
- Scooby Axson