The Korea Customs Service (KCS) announced Monday that it has launched a special trade security investigation unit focused on combating origin fraud in exports — specifically targeting products subject to U.S. anti-dumping duties and import restrictions.
Officials say that foreign-made goods are increasingly being disguised as South Korean in origin through tactics such as label substitution and forged documentation, in order to exploit South Korea’s preferential trade status with the United States.
In the first three months of 2025 alone, authorities have identified approximately 28.5 billion won (about $20 million) worth of goods falsely labeled as Korean in origin — already exceeding the full-year total of 21.7 billion won reported in 2024.
While South Korea's reputation for manufacturing quality has long been leveraged by unscrupulous exporters, recent cases indicate a growing shift toward using false labeling explicitly to dodge U.S. tariffs.
In one case last November, customs officials intercepted a Chinese mattress manufacturer attempting to export products with falsified Korean certificates of origin.
More recently, in January, authorities uncovered a Chinese-owned company operating in South Korea that was exporting Chinese-made lithium battery cathode materials to the U.S. under fraudulent Korean origin claims.
“Export circumvention through origin fraud can severely undermine the credibility of legitimate Korean products and risk triggering expanded non-tariff barriers,” said Ko Kwang-hyo, commissioner of the Korea Customs Service, following a public-private sector meeting.
The agency said it is bolstering cooperation with industry stakeholders to improve information sharing and enforcement capacity in an effort to protect domestic manufacturers and uphold the integrity of South Korea’s trade commitments.
reporter
Kim Dong-young
davekim0807@ajupress.com
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