South Korean customs authorities have uncovered a smuggling ring that bought cigarettes in bulk from domestic convenience stores and illegally exported them to high-priced markets such as Australia and New Zealand, generating about 10 billion won ($6.78 million) in profit.
The Korea Customs Service’s Incheon regional office said Wednesday that it had referred 11 suspects, including a ringleader in his 30s, to prosecutors without detention on charges of violating the Customs Act.
The group allegedly smuggled 900,000 packs of cigarettes — including both genuine and counterfeit products worth about 3 billion won — overseas in about 70 shipments between March 2024 and March last year, authorities said.
Investigators said the operation exploited large price gaps between Korea and overseas markets. A pack of cigarettes costs about 4,500 won in Korea, compared with about 41,000 won in Australia, 32,000 won in New Zealand and 25,000 won in the United Kingdom.
The ringleader, who previously worked as a tour guide in Australia, is believed to have organized the scheme after recognizing the profit potential created by those price differences.
The group secured 330,000 packs of cigarettes from domestic convenience stores, offering brokers and shop owners a 4,000-won commission per carton to purchase them in bulk. They also obtained 570,000 packs of counterfeit cigarettes smuggled into South Korea from overseas, according to customs authorities.
To evade inspection, the cigarettes were wrapped in aluminum foil, placed inside acrylic boxes and sealed with screws to avoid detection during X-ray screening. The concealed shipments were then transported by delivery drivers and intercity buses to international courier companies.
Shipping documents falsely described the packages as items such as “rubber mats” or “compressed vinyl” to avoid scrutiny.
Authorities said the suspects also used borrowed mobile phones, aliases and cash payments to multiple drivers in an effort to avoid detection.
Customs officials said they arrested the group and seized 850 cartons of cigarettes that were about to be shipped overseas.
hnpark@heraldcorp.com
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