The Korea Customs Service announced on December 26 that it will launch a special crackdown on all illegal trade and foreign exchange transactions to support stable foreign exchange supply and demand in response to the high exchange rate.
The special crackdown will focus on the following: failure to collect trade payments in violation of laws and regulations, irregular trade settlements exploiting alternative means such as virtual assets, and the illegal transfer of foreign currency assets overseas through the misuse of trade.
Failure to collect payments refers to cases where trade payments that should be brought into Korea are not collected for an extended period without declaration or post-reporting, or where false reports are made to avoid collection. Irregular settlements involve hindering the expansion of dollar liquidity by receiving payments through alternative means such as illegal currency exchanges or virtual assets, instead of bringing in foreign currency claims like US dollars during trade transactions.
The illegal transfer of foreign currency assets overseas includes reporting export prices at undervalued amounts to retain the difference abroad unjustly, or reporting import prices at inflated amounts to illegally transfer excessive foreign currency out of the country.
To implement the special crackdown, the Korea Customs Service will conduct an analysis of information on all export-import and foreign exchange transactions, with a focus on identifying illegal trade and foreign exchange activities that cause imbalances in foreign exchange supply and demand for unjust gains.
First, foreign exchange inspections will be conducted on 35 companies suspected of underreporting export payments by failing to receive payments through foreign exchange banks. In addition, inspections will be expanded for export-import companies where suspicious transactions are identified, and investigations will be launched in cases where criminal activity is confirmed.
However, in order to avoid discouraging the legitimate business activities of export-import companies engaged in lawful trade, the Korea Customs Service will conduct precise information analysis and only initiate investigations when suspicions are clearly confirmed. Internal monitoring will also be strengthened to promptly close cases where illegal activity is unclear.
Commissioner Lee Myunggu of the Korea Customs Service stated, "We will respond strictly to illegal and irregular trade and foreign exchange transactions that seek to exploit the high exchange rate for unjust profit," adding, "Through these efforts, we aim to foster a sound and stable foreign exchange market."
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