Domestic Companies Face Trade Fraud Crisis... 56.6 Billion Won Lost Over 5 Years

Jinwook Jung, member of the Democratic Party of Korea.

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Over the past five years, losses suffered by domestic companies due to overseas trade fraud have exceeded 56 billion won.

According to audit materials submitted by Jinwook Jung, a member of the Democratic Party of Korea (representing Gwangju Dongnam-gap), to the National Assembly on October 9, and sourced from the Korea Trade-Investment Promotion Agency (KOTRA), the total amount of trade fraud damages reported to KOTRA’s overseas trade offices from 2021 to the first half of 2025 amounted to 56.61 billion won, with 505 cases reported.

By year, the damages were as follows: 8.449 billion won (130 cases) in 2021, 7.746 billion won (125 cases) in 2022, 7.64 billion won (118 cases) in 2023, 6.024 billion won (90 cases) in 2024, and 26.754 billion won (42 cases) in the first half of 2025. By type, the cases included: 134 cases of document forgery, 124 cases of poor shipment, 83 cases of monetary fraud, 63 cases of payment fraud, 63 cases of email fraud, 10 cases of illegal stay, and 28 cases classified as other.

However, KOTRA pointed out a statistical limitation, noting that it is difficult to calculate the post-relief rate without companies voluntarily sharing information. Regarding this, Assemblyman Jung stated, "Despite the enormous scale of damages, there are gaps in accurately assessing the situation and managing outcomes," urging for institutional improvements. He analyzed that this serves as a key obstacle to both the efficiency of on-site support and the development of policies to help affected companies recover.

KOTRA announced that, to respond to trade fraud, it increased the number of dedicated personnel from one to two in June last year and established an organic cooperation system between its headquarters and overseas trade offices. In 2025, the agency is also working to strengthen its initial response capabilities, including the revision of its 'Trade Fraud Prevention and Response Manual.'

Assemblyman Jung stated, "With damages totaling 56.6 billion won over the past five years, based on reported cases, overseas trade fraud has already become a persistent risk faced by our companies." He added, "As the types of damages are becoming increasingly diverse, it is essential to systematically manage and disclose damage statistics, refine initial response procedures for each case, and simultaneously strengthen on-site support capabilities."

Assemblyman Jung further emphasized, "In particular, considering the high volatility where a single large-scale incident can determine the annual scale of damages, it is crucial to establish a more robust system for providing preventive information and ensuring swift response."

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