Korea boosts border controls amid illicit fund spike

Korea

South Korea’s customs authority has established a new emergency unit to intensify its crackdown on cross-border criminal activity, following a sharp rise in scams, drug trafficking and illicit financial flows linked to overseas networks.

The Korea Customs Service (KCS) confirmed it has created the Transnational Crime Eradication Task Force, a specialised group designed to intercept illegal goods and disrupt the movement of criminal funds across borders, claims Korea Herald.

The agency said the initiative marks a major escalation in its efforts to combat globalised threats ranging from drug smuggling to intellectual property infringements.

The task force is made up of two core teams: an operations arm leading frontline investigations, and a support wing focused on analysing international intelligence and coordinating cross-border data sharing. The KCS said this structure will allow it to respond more quickly to emerging risks, especially those stemming from sophisticated online and financial scams.

Officials highlighted the growing convergence of investment scams, illegal online gambling and drug distribution into organised transnational crime groups. One recent case uncovered by the agency involved the use of shell bank accounts to launder money tied to a Cambodia-based scam syndicate. The new unit is now analysing ATM withdrawal records and overseas credit card payments linked to the group to track the flow of illicit funds.

Beyond financial crime, the KCS is stepping up inspections of cross-border e-commerce shipments to block hazardous items. Recent crackdowns identified counterfeit products containing dangerous levels of carcinogenic substances, including lead and cadmium, with concentrations exceeding permitted safety thresholds by more than 500 times.

The agency said it intends to further strengthen its investigative infrastructure and expand international cooperation to uphold consumer safety and disrupt global supply chains linked to drugs and illegal firearms. As part of this strategy, the KCS plans to begin joint operations in 2026 with countries deemed high-risk, including Cambodia, Laos and Canada.

On the financial side, the agency also intends to upgrade its fund-tracking systems to stop the financing of voice-phishing schemes and illegal gambling, and to prevent counterfeit banknotes from circulating domestically.

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