Seoul to Crack Down on Illegal Car Exports to Russia

Customs authorities in South Korea have announced a significant expansion of their enforcement operations against illegal vehicle exports to Russia. The Korea Customs Service stated on Thursday that it will ramp up its crackdown following the discovery of an increasing number of vehicles being funneled through third countries to circumvent trade restrictions.

According to official data, the value of illicit vehicle exports from South Korea to Russia reportedly jumped more than five-fold last year, reaching 149.2 billion won ($100.78 million). This surge comes after the South Korea government tightened export regulations in 2024 in response to the full-scale invasion of Ukraine. Investigators found that some traders falsely reported destinations to customs officials, claiming cars were bound for neighboring nations such as Kazakhstan or Kyrgyzstan when they were actually destined for the Russian market.

Other illicit methods included purchasing new vehicles and mislabeling them as used cars before shipping them through intermediary hubs like China. A customs official noted that many of these vehicles are high-end German premium brands. Since 2024, South Korea law has required a special permit for the export of any vehicle with an engine displacement larger than 2.0 liters to the Russian Federation.

Some traders falsely reported to the customs office that the cars were being exported to neighbouring countries such as Kazakhstan and Kyrgyzstan even though the final destination was Russia.

Those found guilty of violating these export laws face severe penalties, including up to seven years in prison or fines up to five times the value of the goods. These domestic efforts align with broader concerns regarding grey-market schemes, such as those involving tens of thousands of vehicles exported from China to Russia, that often circumvent international sanctions and the commitments of global automakers to exit the Russian market.