Фото: piqsels.com
South Korea’s Incheon Regional Customs uncovered a scheme involving the illegal export of used cars to Russia and Belarus in violation of existing restrictions. The cases involving four people have been referred to prosecutors, the customs service said.
According to investigators, from March 2024 to February 2026, participants in the scheme exported 1,024 used cars with engine capacities exceeding 2,000 cc to Russia and Belarus without the required permits. The total value of the vehicles is estimated at 50.7 billion won, or about $36 million.
To conceal the cars’ final destinations, the suspects listed third countries in customs documents. Customs officers found that the transport company prepared two sets of documents: one for South Korean authorities, containing information about deliveries to third countries, and another used to actually transport the cars to Russia and Belarus.
Because of restrictions on banking transactions, participants in the scheme received export proceeds in cryptocurrency, including Tether (USDT) stablecoins. The total volume of identified virtual-asset transactions amounted to 279.6 billion won, or about $204 million.
According to customs authorities, the cryptocurrency was transferred to intermediaries’ wallets, then converted into won and transferred to South Korean car exporters. Investigators believe the system was used to conceal the movement of funds and circumvent foreign exchange controls.
The case involves a foreign national in his 40s, whom investigators consider the organizer of the scheme, as well as three South Korean citizens. Their cases have been referred to prosecutors without the suspects being taken into custody. They are accused of violating the Customs Act, the Foreign Trade Act and foreign exchange regulations.
In addition, Incheon Regional Customs imposed fines totaling about 11 billion won on participants in the transactions.
South Korea restricts exports to Russia and Belarus of goods that could be used for military purposes. The list of controlled products includes passenger cars with engine capacities exceeding 2,000 cc. A government permit is required to supply them.