"Illegal Rerouted Auto Exports to Russia Total 179.6 Billion Won in 3 Years; Crackdown Tightened"

The government is tightening its control over the rerouted export of automobiles to Russia via Korea.

On March 12, the Korea Customs Service announced that it will launch a high-intensity investigation to block the illegal export of automobiles to Russia through third countries. This move aligns with the international community's export control measures, which were implemented in response to the prolonged war between Russia and Ukraine.

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This measure comes amid ongoing attempts at illegal exports, despite the fact that the criteria for export approval of vehicles subject to export controls to Russia have been tightened.

The strengthened approval criteria for exports to Russia were implemented by first adding vehicles worth more than 50,000 dollars (based on value) to the list of vehicles requiring approval in April 2023, and then changing this to vehicles with engine displacements exceeding 2,000cc (based on engine size) in February 2024.

If someone violates these regulations and exports without government approval, they may face imprisonment of up to seven years or a fine of up to five times the value of the goods, in accordance with Article 53 of the Foreign Trade Act.

However, attempts to violate export controls have continued recently. In fact, from 2023 to 2025, there were a total of 29 cases of illegal automobile exports to Russia detected, amounting to 179.6 billion won. In particular, last year, the value of illegal exports increased by 465 percent compared to the previous year.

A typical type of violation involves falsely declaring Kazakhstan or Kyrgyzstan-neighboring countries of Russia-as the final destination, while actually bringing the vehicles into Russia.

In addition, recently, illegal exporters have diversified their methods. These include falsely reporting vehicles subject to export controls with engine displacements exceeding 2,000cc as small cars (2,000cc or less), or disguising domestically purchased new vehicles as used cars and exporting them to third countries, when in fact the vehicles are illegally exported to Russia.

To block these illegal exports, the Korea Customs Service plans to strengthen its enforcement system, centering on the "Trade Security Investigation Task Force," which was established in April of last year.

During investigations, the agency will actively utilize AI and big data-based monitoring systems for export, import, and cargo information to identify companies with a high risk of illegal exports. It will also seek to enhance the effectiveness of enforcement by cooperating with related organizations such as the Ministry of Trade, Industry and Energy.

Myunggu Lee, Commissioner of the Korea Customs Service, stated, "As a responsible member of the international community, the Korea Customs Service will work to eradicate illegal export activities that violate export controls," adding, "Through these efforts, we aim to enhance the nation's credibility and export competitiveness, as well as provide the necessary customs administration support for domestic exporters in the field."

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