South Korea cracks down on export fraud to bypass U.S. tariffs
On April 21, 2025, the Korea Customs Service (KCS) launched a large-scale crackdown on illegal export practices in which foreign-made goods are falsely labeled as South Korean in origin, Kazinform News Agency correspondent reports, citing the KCS.
The initiative comes amid a surge in such violations, which officials link to the tightening of U.S. trade policies—particularly the imposition of steep tariffs and anti-dumping duties promoted by the Trump administration.
According to KCS, origin-related violations totaled 29.5 billion won (about USD 20.81 million) in the first quarter. Notably, 97% of these cases involved exports to the United States. In comparison, the total value of origin-related violations throughout 2024 reached 34.8 billion won, with 62% of those involving shipments destined for the United States.
In response to the surge in violations, the KCS has established a Special Investigation Task Force on Trade Security and strengthened cooperation with the private sector. The agency's primary goal is to protect the international reputation of Korean-made products and ensure fair competition in global markets.
Authorities have warned of tough enforcement measures, including unannounced inspections, administrative penalties, and potential criminal prosecution. Exporters have been urged to strictly adhere to rules on country-of-origin labeling to avoid legal consequences and trade disputes.
Earlier, Kazinform News Agency reported that China faced up to a 245% tariff on imports to the United States as a result of its retaliatory actions.