(Yonhap)
(Yonhap)

South Korea is seeing a sharp surge in silver smuggling as global prices spike, customs authorities said Wednesday.

According to the Korea Customs Service, 14 cases worth 4.56 billion won ($3.1 million) were detected in the first quarter, already exceeding last year’s total of 10 cases worth 1.69 billion won. The value of seizures has jumped 2.7 times year on year.

Authorities attributed the increase to soaring prices. Global silver prices climbed from about $30 per troy ounce early last year to as high as $114.88 this year, sharply raising incentives for tax evasion.

Silver imports are subject to a 3 percent tariff and 10 percent value-added tax, making smuggling more profitable as prices rise.

Methods are also evolving. Some travelers have concealed silver in personal luggage, while others have disguised shipments as accessories such as necklaces and rings via express cargo.

In one case in March, nine people were caught smuggling 567 kilograms of silver worth 3.4 billion won by hiding 5-kilogram batches in suitcases across about 30 trips through Incheon Airport.

Authorities warned that smuggled silver could be used for tax evasion or money laundering and said inspections of passenger baggage and cargo will be expanded, alongside stricter X-ray screening.

“We will extend investigations to distribution channels and track illicit gains to eradicate silver smuggling,” Commissioner Lee Myung-koo said.


stlee0329@heraldcorp.com