The Korea Customs Service will convert the Trade Security Special Investigation Team (TF), which has been operating as a task force, into a permanent organization. With U.S. President Donald Trump's protectionist stance continuing, the move aims to protect export industries and strengthen trade security.
According to relevant ministries on Jan. 21, the Korea Customs Service is discussing with the Ministry of the Interior and Safety and the Ministry of Economy and Finance a plan to place the special investigation team as a permanent division under the Investigation Bureau. The Korea Customs Service plans to designate some personnel in the organization as special judicial police officers and conduct compulsory investigations into certain illegal acts.
The special investigation team is one of three organizations under the U.S. Tariff Policy Response and Export Industry Protection Headquarters of the Korea Customs Service. The headquarters launched in March and consists of: ▲ the special investigation team ▲ the risk inspection team ▲ the corporate support team.
The special investigation team is in charge of cracking down on acts such as manipulating the country of origin or exporting via third countries to evade high U.S. tariffs and import-export regulations. Attempts to evade export controls and the leakage of strategic materials or core technologies are also subject to investigation.
An official at the Korea Customs Service said, "Although it is currently operating as a task force (TF), we determined that a constant response system is necessary in an increasingly complex trade security environment."
The government is considering making the special investigation team permanent due to the spread of protectionism worldwide and the increase in indirect exports, as well as the outflow of strategic materials and technologies.
In August, the United States decided through the "reciprocal tariff" executive order to disclose corporations and countries engaged in indirect exports every six months and to impose a 40% tariff and fines on related goods. It also signaled sanctions such as restrictions on participating in procurement projects.
Due to the strengthening of U.S. trade barriers, indirect exports by other countries through Korea are also surging. According to the Korea Customs Service, the scale of detected indirect exports from January to August this year was 357.8 billion won, already surpassing the total for last year. That is a 13-fold (1,317%) increase from the same period a year earlier.
The Korea Customs Service believes that it lacks special judicial police personnel within the agency to safeguard trade security and plans to seek designation of some staff in the permanent special investigation team as special judicial police officers.
Korea Customs Service Commissioner Lee Myung-gu said, "Indirect exports undermine the value of K-brands in the U.S. market and can lead to higher inspection levels by U.S. customs for cargo originating from Korea, causing secondary damage to domestic corporations," adding, "We will significantly expand special judicial police and focus on strengthening trade security."