Customs agency plans special probe into suspected illegal FX trading
Korea Customs Services headquarters in Daejeon / Yonhap
Customs authorities on Tuesday announced a plan to launch a nationwide special inspection targeting suspected illegal trade and foreign exchange (FX) practices amid the continued depreciation of the local currency.
The inspection will cover 1,138 companies whose reported export and import data show significant discrepancies with trade payments processed through banks, the Korea Customs Service (KCS) said.
The move comes as part of broader efforts in responding to the continued depreciation of the Korean won. The won dropped further Tuesday morning, hovering below 1,470 against the U.S. dollar shortly after recovering from a near 16-year low.
"Supporting foreign exchange rate stability will be a key task for the agency this year," KCS Commissioner Lee Myeong-ku said in a press release, pledging a strict crackdown on illegal trade and foreign exchange activities.
The probe will prioritize inspecting companies at high risk of illegal foreign exchange transactions based on additional analyses of trade performance and financial transaction data.
The KCS emphasized that further criminal investigations and prosecutions will proceed only when clear evidence of wrongdoing is found, adding that cases with uncertain illegality will be promptly closed to avoid disrupting normal trade activities.
The move comes after the gap between trade payments received or paid through banks and customs-reported trade volumes reached $290 million between January and November of last year, marking the largest discrepancy in five years.
While timing differences in trade settlements can cause normal discrepancies, the KCS said the unusually large gap last year may indicate intentional delays or failures to make or receive payments to exploit fluctuations in the foreign exchange market.
Foreign exchange authorities have warned against the won's "excessive" weakness and pledged strong policy measures this year to stabilize the market.