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South Korea's customs agency has uncovered a record amount of trade security violations in the first five months of this year, while the finance ministry reported a surge in illegal foreign exchange transactions, according to Yonhap News.

Coverage Comparison

Yonhap News, South Korea's leading wire service, reported two separate developments. In a July 6 article, it detailed the customs agency's crackdown on trade security violations. In a July 14 article, it covered the finance ministry's announcement on illegal foreign exchange transactions. Both reports quoted official sources and presented the government's actions as part of broader efforts to curb illegal activities.

Key Claims

  • The Korea Customs Service (KCS) detected a total of 770.3 billion won (US$503 million) worth of trade security violations in the first five months of this year, a sharp rise from the 655.6 billion won reported for all of 2025.
  • Of this amount, 527.3 billion won involved foreign-made goods brought into South Korea and falsely labeled as Korean-made products for export. The KCS said such violations aim to exploit the brand image of South Korean products, dodge import regulations, and avoid high tariffs, anti-dumping measures, or countervailing duties.
  • The agency also detected 243 billion won worth of attempted unauthorized exports of strategic items during the period, up from 198.3 billion won for all of 2025. The KCS attributed the increase to intensifying global conflicts and technology competition, saying, "Amid intensifying global conflicts and technology competition among advanced countries, the need to implement export controls has grown, and we have been strengthening surveillance and crackdowns."
  • Separately, the Ministry of Finance and Economy announced that South Korea detected 2.4 trillion won (US$1.61 billion) in illegal foreign exchange transactions through May. The ministry said the findings were announced during a meeting with foreign exchange-related agencies, amid concerns over illegal transactions after the Korean won's recent slide against the U.S. dollar.
  • The Korea Customs Service referred a total of 84 cases involving illegal foreign exchange transactions to prosecutors through May.
  • The finance ministry, the customs service, and the tax agency vowed to strengthen coordination to root out offshore tax evasion and track illicit foreign currency flows.
  • Lee Hyung-ryul, director general for international finance at the ministry, said the supply-demand balance in the foreign exchange market is gradually improving, supported by foreign currency inflows from exporters. He added that South Korea is expected to undergo a structural shift in foreign currency supply in the second half, supported by its strong economic fundamentals, as demonstrated by a record trade surplus of US$138.3 billion in the first half of 2026.