"Re-imported Exported Cigarettes": Smuggling Ring Busted for Domestic Cigarette Trafficking

by Jeong Ilwoong

Published 02 Dec.2025 10:20(KST)

A group attempting to profit by bringing exported cigarettes back into the country and disguising them as goods being returned to a third country has been caught by customs authorities.

The Seoul Regional Customs Office of the Korea Customs Service announced on December 2 that it had apprehended six individuals, including Mr. A (48), on suspicion of violating the Customs Act. The authorities have referred Mr. A, the ringleader, and Mr. B (42) and Mr. C (58), who were responsible for customs clearance, to the prosecution for arrest, while three accomplices have been reported without detention.

Overview of the cigarette smuggling case disguised as return export. Provided by Seoul Regional Customs Office, Korea Customs Service

According to the Seoul Regional Customs Office, the suspects are accused of smuggling 1.75 million packs of domestically produced cigarettes (with a market value of 7.3 billion won) back into Korea after they had been legally exported.

The method involved collecting domestically produced cigarettes that had been exported overseas, bringing them back into Korea, and falsely declaring to customs that they were being returned to a third country. During bonded transportation, the cigarettes were swapped with substitute items such as bottled water, and then smuggled into the country. "Return export" refers to the process of re-exporting goods that have arrived from overseas without customs clearance into the domestic market.

The Seoul Regional Customs Office began its investigation in February after receiving information from the police that illegal cigarettes were being distributed domestically. Through inquiries, stakeouts, tailing of transport vehicles, and CCTV analysis, they identified the secret warehouse used in the crime.

Further investigation, including the execution of search warrants, analysis of call records, digital forensics, and tracing of bank accounts, revealed the full extent of the operation.

The investigation found that Mr. A and his associates divided roles among ringleader, customs clearance manager, and transport manager. They orchestrated the scheme by transporting the smuggled cigarettes from Busan Port to Incheon Airport under bonded transport, making it appear as if they were being returned via international mail (EMS).

During this process, Mr. A and others moved bonded transport vehicles to the secret warehouse during nighttime and weekends, diverted the cigarettes into the domestic market, and then filled boxes of the same size with bottled water, newspapers, A4 paper, and printers to match the weight, making it appear as if the goods were being properly returned.

The Seoul Regional Customs Office determined that the group attempted the smuggling operation to avoid the high taxes and surcharges imposed on imported cigarettes and to pocket the difference. The total amount of taxes and surcharges that would have been due if the cigarettes had been legally imported is estimated at approximately 6.1 billion won.

In particular, it was confirmed that Mr. A and Mr. B had previously been caught by other customs offices for cigarette smuggling and are currently on trial without detention.

It was also revealed that Mr. A and his associates used the profits from these crimes to maintain a luxurious lifestyle, living in high-end apartments in Seoul.

The Seoul Regional Customs Office, in cooperation with the Seoul Central District Prosecutors' Office, identified and seized assets such as the rental deposit of a Seoul apartment held under a borrowed name by Mr. A, in order to confiscate the illegal proceeds and secure the fines to be imposed on the suspects.

Lee Cheolhun, Director of Investigation Division 1 at the Seoul Regional Customs Office, stated, "Cigarette smuggling is a clear transnational crime that disrupts distribution order and undermines national finances. The Seoul Regional Customs Office will continue to thoroughly track down and block organized smuggling crimes to the end."