The 19-year-old has joined from Suwon Samsang and will be loaned out immediately to Wolves' partner club Grasshoppers in Switzerland.
A highly-rated prospect in his homeland, Jeong is a regular in the South Korea under-23s team and was handed his first senior international cap last year.
Scott Sellars, Wolves technical director, said: “Sang-bin is a young, raw talent, who has done very well for his club and national team whilst still only a teenager.
“We hope to provide him an opportunity to develop and grow as a player, and a person, in Zurich with Grasshoppers, before returning in the future.
“We’ve already seen how this process can benefit a player like Toti Gomes, and we are looking forward to seeing what Sang-bin can achieve in the Swiss league, and then at Wolves.”