Customs dismantle major silver smuggling network

Customs officers at Incheon International Airport seized 20 kilograms of silver granules from the luggage of a traveler returning from Hong Kong in February. The haul, valued at about 80 million won, consisted of refined silver with a purity exceeding 99.9 percent.

An investigation revealed that a nine-person ring smuggled 567 kilograms of silver into the country across 30 separate operations. Authorities said the ringleader admitted the group bought silver abroad using cryptocurrency and foreign currency, then secretly sold it to local precious metals dealers. To avoid detection, the group employed couriers in their 50s or older who had little international travel experience.

Smuggling attempts have surged alongside rising silver prices. The Korea Customs Service reported on April 8 that the value of silver seized in the first quarter reached 4.561 billion won across 14 cases. That is nearly 2.7 times last year’s total of 1.693 billion won and already exceeds the combined 2.462 billion won seized from 2023 through 2025.

Officials say the surge is driven by a sharp increase in silver prices. Trading at around $30 per troy ounce early last year, silver climbed to $114.88 at the start of this year, a roughly 232 percent jump. Rising global economic uncertainty prompted investors to seek silver as a more affordable alternative to gold, while strong demand from advanced industries, including semiconductors, provided additional support. A weaker won against the U.S. dollar further widened the price gap, pushing domestic prices above those overseas.

Smuggling methods vary. Some travelers conceal silver purchased abroad in their luggage when entering the country. Others disguise shipments as personal items such as necklaces or rings and send them via express delivery. Late last year, customs officials apprehended a distributor who smuggled about 200,000 silver accessories worth 1.2 billion won by falsely declaring them as personal-use items in express shipments.

The Korea Customs Service plans to step up enforcement, warning that illegally imported silver could be used for tax evasion or money laundering. With prices expected to remain high, inspections of passenger luggage, express shipments, and postal cargo will be expanded, and X-ray screening will be tightened. Informants who report silver smuggling may receive rewards of up to 300 million won.

Commissioner Lee Myung-gu said authorities will broaden investigations to include distribution networks and track down criminal proceeds. He cautioned that even those acting as couriers could face penalties under the Customs Act.


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