Trade security crackdowns hit record high, Korea Customs Service says

The volume of trade security violations detected in South Korea — including semiconductor equipment with falsified labels and secondary battery machinery smuggled through third countries — has reached a record high.

The Korea Customs Service said Monday it had seized goods worth 770.3 billion won ($527 million) in trade security violations as of the end of May, surpassing the full-year total of 655.6 billion won recorded last year and marking the highest amount ever detected.

Illicit re-exports of domestically produced goods disguised as foreign-origin products totaled 527.3 billion won through May, already exceeding last year's full-year figure of 457.3 billion won in just five months. Illegal exports of strategic materials also reached 243 billion won, well above last year's full-year tally of 198.3 billion won.

The global trade order has been shifting rapidly amid intensifying great-power rivalry and the spread of protectionism. In response, the government has designated the protection of economic security as a national policy priority, with the elimination of illegal trade activities that undermine it set as a core objective.

To fulfill that mandate, the Korea Customs Service elevated trade security investigations from a subcategory of economic crime into a standalone specialized field, and established dedicated trade security units and personnel at its headquarters and major customs offices. The agency has also classified trade security offenses into two categories — illicit re-exports of goods disguised as domestic products, and illegal exports of strategic materials — and is conducting intensive enforcement operations targeting both.

"Trade security violations are not merely breaches of domestic law by individual companies — they are serious crimes that damage South Korea's international credibility," said Kim Jeong, director of the Korea Customs Service's investigation bureau. "We will expand our trade security investigation infrastructure, strengthen our capacity to analyze and utilize customs data on imports and exports, and work in close coordination with relevant agencies to thoroughly block any economic security crimes that run counter to the national interest."