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Group Arrested for Illegally Exporting 50.7 Billion Won in Used Cars to Sanctioned Nations
Consumer Durables · Motor Vehicles · yonhap_finance · 2026-08-31
Authorities have apprehended four individuals for smuggling over 1,000 used cars to sanctioned countries and laundering payments via cryptocurrency.
What Happened
Case Overview: The Incheon Main Customs office has referred four individuals to the prosecution for illegally exporting 1,024 used cars to Russia and Belarus, both of which are subject to international sanctions. The total market value of the smuggled vehicles is estimated at 50.7 billion won.
Modus Operandi: The group bypassed mandatory export permits from the Ministry of Trade, Industry and Energy required for high-capacity vehicles. They utilized forged trade documents, creating separate sets of paperwork for customs declarations and actual shipping to conceal the true destinations of the vehicles.
Cryptocurrency Laundering: Due to international financial sanctions preventing standard payment methods, the group employed 'hwan-chigi' (illegal currency exchange) techniques using Tether (USDT). They received payments in cryptocurrency, which were then liquidated at domestic exchanges to convert into Korean won, effectively masking the source of funds.
Regulatory Action: Incheon Customs identified that the group's total illicit trade volume reached approximately 279.6 billion won, covering 4,836 vehicles. In addition to criminal charges, the authorities imposed 11 billion won in administrative fines for violations of the Foreign Exchange Transactions Act, vowing to continue tracking new forms of financial crime.