1.16 Million Packs, Largest Scale... Smokers Receive 2 Cigarettes Each
Officially Exported to Hong Kong and Thailand, Then Smuggled into China
Domestic Tax per Pack 3,318 Won, Sufficient Opportunity Cost
[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] A gang involved in the largest-ever smuggling of cigarettes was caught by customs after exporting 1.16 million packs of domestically produced cigarettes to Southeast Asia and then secretly bringing them back through China.
Daegu Regional Customs Office announced on the 26th that it arrested four people, including Mr. A (40), on charges of smuggling (violation of the Customs Act, etc.) for hiding 1.16 million packs of domestically produced cigarettes (worth approximately 4.8 billion KRW based on 4,500 KRW per Esse pack) exported to Hong Kong, Thailand, and other countries inside Chinese plywood, and sent them to the prosecution in custody.
The seized cigarettes amount to enough for 8.9 million smokers in Korea to smoke two or more cigarettes simultaneously, marking the largest scale in cigarette smuggling cases. This figure is one-third more than the previous largest smuggling record of 700,000 packs detected by the Busan Regional Customs Office in February.
Mr. A and others exploited the fact that cigarette taxes of 3,318 KRW per pack are not imposed on exported cigarettes. It is estimated that they distributed 940,000 packs until their arrest, earning profits amounting to 3.1 billion KRW.
They purchased domestically produced cigarettes officially exported to places like Hong Kong, then transported them to China and concealed them in empty spaces inside stacks of plywood with hollowed interiors to bring them back into Korea. Customs officials explained that they also showed meticulousness by using only cash during the purchase of smuggled goods and using burner phones that are difficult to trace.
Daegu Customs seized 240,000 packs of cigarettes from them and is pursuing accomplices who fled.
Meanwhile, the smuggling of domestically produced cigarettes has been increasingly rampant as domestic cigarette taxes have risen sharply. Earlier this year, on February 11, a gang attempting to smuggle 700,000 packs (worth 3.1 billion KRW), enough to fill a 40-foot container, was caught by the Busan Regional Customs Office, and on May 13, an organization attempting to smuggle 640,000 packs (worth 2.8 billion KRW) through Busan Port was also apprehended.
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