South Korea has reported a rise in attempts to disguise foreign products, mainly from China, as Korean exports to bypass U.S. tariffs, according to the Korea Customs Service.
The agency identified 29.5 billion won ($20.81 million) worth of origin-related violations in the first quarter, with 97% linked to shipments bound for the United States. This follows a special investigation launched last month in response to newly imposed U.S. trade measures.
By comparison, the total value of such violations in all of 2024 was 34.8 billion won, with U.S.-bound shipments making up 62%. The increase in disguised exports comes amid a new wave of tariffs under U.S. President Donald Trump, who began introducing new trade restrictions in February.
The findings include 3.3 billion won worth of Chinese-made cathode materials relabeled as South Korean products to avoid high U.S. tariffs, and 19.3 billion won worth of Chinese surveillance cameras reassembled in South Korea before shipment. Some goods have already been exported, while others remain at the port.
South Korean and U.S. customs officials met on Monday to discuss joint investigation efforts. The Korea Customs Service has also established a special task force and is preparing additional measures to protect local businesses from the fallout of illegal transshipment schemes.
All violations uncovered in the probe will be referred to prosecutors.
