The tariff service said on the 26th it will carry out a special crackdown on illegal trade and foreign exchange transactions that block the inflow of U.S. dollars into the domestic market. With the won-dollar exchange rate threatening to top 1,500 won, the intent is to stabilize the foreign exchange market by increasing the supply of U.S. dollars in the domestic market.
The main targets of this special crackdown are three areas: ▲ non-collection of trade payments ▲ irregular trade settlement ▲ offshore flight of foreign currency assets. The tariff service plans to first conduct foreign exchange inspections of 35 companies suspected of under-collection because they did not receive export proceeds through foreign exchange banks. It also plans to expand inspections to import and export corporations where abnormal transactions are identified through additional analysis. However, in consideration of the possibility of discouraging business activity, it will launch investigations only when suspicions are confirmed.
According to the tariff service, this year corporation A was to receive $11.8 million in accounts receivable from an overseas corporation owned by the owner family, but claimed an offset by saying it owed the same amount to that corporation. However, a tariff service investigation found the debt was fake and that the owner family had hidden funds overseas by not collecting the payment. This is a typical non-collection of trade payments, and the tariff service is currently investigating the specific violation circumstances of corporation A.
Corporation B reduced the export price of copper scrap by 180 billion won and, in communication with an overseas counterparty, received the difference in virtual assets. Corporation B exchanged the export price manipulation difference received in virtual assets into won through an illegal currency exchange. This is an irregular trade settlement, and the tariff service sent the company's CEO and other industry figures to prosecutors without detention.
Tariff Service Commissioner Lee Myung-gu said, "By responding strictly to illegal and irregular trade practices and foreign exchange transactions that seek to unfairly profit by exploiting the high exchange rate phase, we will mobilize all of the tariff service's investigative capabilities to help build a sound and stable foreign exchange market."