China Fakes ‘Made in Korea’ to Dodge Tariffs

By Elke Porter | WBN News Global | April 21, 2025

South Korea’s customs agency has reported a sharp increase in attempts to disguise Chinese-made goods as South Korean exports in order to evade U.S. tariffs. According to the Korea Customs Service (KCS), 29.5 billion won (approximately $20.81 million USD) in country-of-origin violations were uncovered in the first quarter of 2025 alone—97% of which were U.S.-bound. This marks a dramatic rise compared to 34.8 billion won in total violations reported throughout all of 2024.

The tactic capitalizes on the U.S.-South Korea Free Trade Agreement, which grants tariff exemptions to South Korean exports. Investigations revealed that in March alone, 19.3 billion won worth of Chinese surveillance camera parts were shipped to South Korea, minimally reassembled, and then falsely labeled as “Made in Korea” to bypass U.S. restrictions on Chinese tech. In a separate case, 3.3 billion won worth of battery cathode materials were similarly misrepresented.

“These kinds of deceptive practices undermine legitimate trade and threaten the trust placed in South Korean export labeling,” said Lee Kwang-woo, a senior official at KCS. He noted that similar patterns had been observed in earlier periods of elevated trade tensions between China and the U.S.

China’s record of bypassing international intellectual property standards and enforcement—from pirated DVDs in the early 2000s to software knockoffs—has long raised concerns. Observers argue this pattern now extends into global trade routes, especially as Beijing looks for ways to soften the blow of newly reimposed U.S. tariffs, reportedly as high as 145% on some goods under President Donald Trump’s administration.

In response, Korea Customs Service (KCS) has formed a specialized task force and is actively coordinating with U.S. customs authorities. Goods found in violation are being detained at ports, and offending companies face legal action.

The smuggling and mislabeling cases have largely been centred in South Korean export hubs such as Busan, where logistics volumes are high and scrutiny is intensifying. Analysts warn that continued deception could damage confidence in South Korea’s trade credentials and provoke additional scrutiny from international partners.

As global tariffs continue to reshape supply chains, trade experts caution that further retaliatory measures and market disruptions could follow. For now, the world watches closely as tensions in East Asian trade corridors ripple across global commerce. Is China simply doing what it’s gotta do to stay competitive—or is this just plain wrong?

#Trade Tensions #South Korea Customs #US China Tariffs #Supply Chain Crisis #Made In Korea #Export Fraud #Global Trade #Tariff Evasion #WBN News Global #Elke Porter

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