(Incheon=News1) Reporter Kim Sung-jin shows confiscated gold smuggling items at the Incheon International Airport Customs Export and Import Clearance Building in Jung-gu, Incheon, on Mar. 5. According to the tariff statistics, the recent increase in gold smuggling cases coincides with periods when domestic gold prices surpass international prices (2017-2021), and cases have surged again as domestic prices soared significantly in February this year. (Joint Coverage) /Courtesy of News1
(Incheon=News1) Reporter Kim Sung-jin shows confiscated gold smuggling items at the Incheon International Airport Customs Export and Import Clearance Building in Jung-gu, Incheon, on Mar. 5. According to the tariff statistics, the recent increase in gold smuggling cases coincides with periods when domestic gold prices surpass international prices (2017-2021), and cases have surged again as domestic prices soared significantly in February this year. (Joint Coverage) /Courtesy of News1

Last November, a smuggler who tried to illegally import 30 gold items worth 67 million won, disguised as personal accessories for self-use, was arrested by the tariff office.

In January, a smuggling organization attempting to illegally export 78 gold bullion pieces (85 kg, worth 7.4 billion won) processed into clay form from Hong Kong to Japan through South Korea was arrested through a joint investigation between Incheon Airport Customs and the Gyeonggi Northern Provincial Police Agency.

Gold smuggling, aimed at profiting from domestic and international price differences, is rapidly increasing, prompting the tariff office to launch a concentrated crackdown.

According to the tariff office on the 5th, as global economic uncertainty expands and international gold prices rise, the domestic gold price is forming about 14 million to 27 million won higher per kg than the international price, resulting in the so-called "kimchi premium" phenomenon. The rapidly increasing premium is also leading to more smuggling attempts aimed at price profits.

Smuggling of gold bullion exported from places like Hong Kong into Japan via South Korea is also increasing. It is believed to be an effort to evade Japan's consumption tax (10%).

Gold smuggling is divided into two types. One is direct smuggling from abroad, such as Hong Kong, into the domestic market, and the other is smuggling to a third country via South Korea.

Direct domestic smuggling often involves travelers bringing items through direct flights or transiting via a third country at the airport, or using express delivery, mail, or general cargo to disguise imports for personal use such as bracelets and necklaces. Methods are also employed to produce and conceal these items in other forms, such as machinery.

When smuggling bullion via South Korea to a third country, travelers primarily use a method where they contact travelers departing for a third country at the Incheon Airport transit area to hand over the gold items they possess.

The tariff office will strengthen inspections of suspicious travelers and cargo to prevent gold smuggling aimed at profiting from price differences for the time being. Plans are also in place to promote trilateral cooperation by exchanging gold smuggling information with customs from Hong Kong and Japan for effective crackdowns.

Lee Kwang-woo, Director of the Tariff Office Investigation Division, said, "We are arresting gold smuggling carriers for violations of the tariff laws (smuggling) and expanding investigations into domestic collectors." He particularly noted the need for caution as there have been recent cases of recruiting carriers by offering free airline tickets. He said, "Even in cases where individuals are simply transporting gold due to being lured by various goods, they can be punished for smuggling."