Korea Customs Service steps up crackdown on direct-purchase fraud

The Korea Customs Service is partnering with major domestic and overseas e-commerce platforms to strengthen monitoring and distribution-blocking measures against illegally imported goods sold online.

The agency launched an eight-week "special crackdown on overseas direct-purchase fraud" Monday, running through Dec. 27, targeting smuggling and other illegal activity that exploits the simplified customs clearance regime for overseas direct purchases — including goods that threaten public health and products that infringe intellectual property rights.

The operation is timed to coincide with the sharp spike in direct-purchase volumes that accompanies major discount events such as Singles' Day and Black Friday.

Personal-use items valued at $150 or less — or $200 or less if shipped from the United States — are exempt from import declarations and are not subject to customs duties or value-added tax. Authorities warn that abuse of this exemption is on the rise, with offenders reselling duty-free goods domestically for profit or fraudulently using other people's personal customs identification numbers.

Cases of overseas direct-purchase fraud investigated by the Korea Customs Service from January through September this year totaled 38.5 billion won ($28.8 million). By category, smuggling of goods disguised as personal-use items accounted for 32.4 billion won, infringement of intellectual property rights for 3.2 billion won, and illegal food and pharmaceutical smuggling for 2.9 billion won.

During the special crackdown period, the agency will focus on four areas: smuggling of goods disguised as personal-use items by frequent buyers exploiting the direct-purchase regime; unauthorized use of other individuals' personal customs identification numbers; illegal smuggling of food and pharmaceutical products that threaten public health; and illegal imports of counterfeit goods infringing intellectual property rights, including K-brand products. The agency will work with major domestic and overseas e-commerce platforms to expand monitoring of online distribution channels for illegally imported goods and to block their sale.

The main product categories targeted include cosmetics, food and pharmaceuticals, bags, footwear and clothing, and electrical and electronic products — all areas that see heavy overseas direct-purchase demand.

Meanwhile, the Korea Customs Service will substantially expand its monitoring of online distribution of illegally imported goods in collaboration with major domestic and overseas e-commerce platforms. When harmful food or pharmaceutical products or goods suspected of infringing intellectual property rights are identified, the agency will immediately request the removal of illegal sellers' listings and the suspension of their sales activity.

Korea Customs Service Commissioner Lee Jong-wook said the agency would "concentrate enforcement resources on illegal activities that threaten the health and safety of the public and disrupt the integrity of the customs clearance system, given that this is a period of sharply rising direct-purchase volumes." Lee also urged the public to report any illegal imports or online distribution of illegally imported goods to the agency's smuggling report center or through its official website.