South Korea pledges to accelerate crackdown on illegal car exports to Russia

By Hyunjoo Jin

SEOUL, March 12 (Reuters) - South Korea's customs authorities said on Thursday that they would ramp up a crackdown on illegal car exports to Russia after discovering a growing number of vehicles being sent to Russia via third countries such as China, Kazakhstan and Kyrgyzstan.

Illegal vehicle exports from South Korea to Russia jumped more than five-fold to 149.2 billion won ($100.78 million) last year compared to 2024, when Seoul tightened export restrictions in response to Russia's full-scale invasion of Ukraine, Korea Customs Service said in a statement.

Some traders falsely reported to the customs office that the cars were being exported to neighbouring countries such as Kazakhstan and Kyrgyzstan even though the final destination was Russia, it said.

Others bought new cars, "disguised" them as used cars and shipped them to Russia, through third countries.

A customs official said many of those vehicles were German premium brands imported to South Korea.

Since 2024, Seoul has required vehicles with an engine of more than 2.0-litres to have a permit for export to Russia. Those who break the law face a prison term of up to seven years or a fine of up to five times the value of the goods.

Tens of thousands of cars are being exported from China to Russia under grey-market schemes that often circumvent Western and Asian government sanctions, and automakers' commitments to exit the Russian market, Reuters reported in February.

($1 = 1,480.4600 won)