By Gloria Nosa
South Korea has recently uncovered a significant rise in attempts to circumvent U.S. tariffs by falsely labeling Chinese goods as South Korean exports. In the first quarter of 2025, the Korea Customs Service (KCS) identified 29.5 billion won (approximately $20.81 million) in country-of-origin violations, with 97% of these violations involving shipments to the U.S. This marks a notable increase compared to 2024, when 34.8 billion won in violations were recorded, with only 62% directed to the U.S.
Notable cases include cathode materials and surveillance cameras that were reassembled in South Korea to avoid high tariffs on Chinese products. In response, South Korea has established a special task force and is collaborating with U.S. officials for joint investigations to protect domestic firms and curb the misuse of South Korea’s trade position as a U.S. ally with a free trade agreement.
These developments highlight the growing concern over trade circumvention practices and the need for vigilant enforcement of trade regulations.
