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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Minyoung] South Korea’s Korea Customs Service (KCS) said it uncovered a total of 2.7 trillion won (approximately $2 billion) worth of tax evasion and regulatory violations last year.
The agency announced on March 24 that it held a nationwide meeting of customs investigation officials at the Seoul Main Customs Office to review enforcement results and discuss future priorities.
According to the KCS, detected tax evasion amounted to 444.2 billion won, up 51% from the previous year. The increase was largely attributed to intensified inspections targeting practices such as underreporting import prices of high-end goods—including luxury items, alcoholic beverages, and imported vehicles—as well as evasion of anti-dumping duties on high-tariff products like steel.
Violations of customs and related regulations totaled 2.26 trillion won. By category, breaches of the Foreign Exchange Transactions Act accounted for the largest share at 1.71 trillion won, followed by import requirement violations involving consumer and industrial goods that failed to meet safety standards (364.3 billion won), and false country-of-origin labeling (180.5 billion won).
The KCS said it will focus its investigative efforts on sectors closely linked to consumer prices, including food and daily necessities, as well as tax evasion involving luxury goods and unfair trade practices.
To strengthen enforcement, the agency plans to operate specialized task forces by sector to crack down on irregular and unfair practices.
알파경제 Kim Minyoung Reporter(kimmy@alphabiz.co.kr)
