South Korea is cracking down on a surge in fake “Made in Korea” labels on foreign goods, mainly from China. The move comes as the US has imposed tariffs on several countries, including China. Companies are trying to avoid these tariffs by mislabeling their products as Korean-made. Korean customs officials say the practice is on the rise, with many Chinese companies using Korea as a backdoor to access the US market.
A Surge in Fake Labels
In just the first quarter of this year, Korean customs officials uncovered nearly 1 billion dollars’ worth of goods with fake “Made in Korea” labels. This is already 85% of the total value detected in all of 2024. Most of these goods were shipped to the US. The fake labels are used to avoid US tariffs imposed by the Trump administration.
The tariffs were introduced in March, with rates as high as 145% on some Chinese goods and 25% on some Korean goods. However, the tariffs on Korean goods were suspended for three months. The crackdown by Korean customs is part of a broader effort to protect Korean companies and prevent the country from being used as a conduit for tariff evasion.
Examples of Fake Labels
Some examples of goods with fake “Made in Korea” labels include cathode materials used in lithium-ion batteries and security cameras. In one case, cathode materials worth 3.3 billion won were imported from China and then shipped to the US with fake Korean labels. Similarly, security cameras worth 19.3 billion won were assembled in Korea from Chinese parts and then shipped to the US.
In both cases, the goal was to avoid US tariffs and restrictions. Korean customs officials have set up a special task force to investigate and prevent such cases. They’re planning to introduce new measures to protect domestic companies.
The source of this information is Channel News Asia.