Korea Cracks Down on Fake ‘Made in Korea’ Labels Amid U.S.-China Tariff War
South Korea is intensifying efforts to stop foreign goods—mainly Chinese—from being falsely labeled as Korean-made before export to the United States, aiming to avoid steep U.S. tariffs. The Korea Customs Service (KCS) announced Monday it had already seized 28.5 billion won ($20 million) worth of such fraudulent exports in 2025, surpassing all of 2024.
It was estimated that 97% of the goods were bound for the U.S..
The crackdown comes amid escalating U.S.-China trade tensions, which have led to significantly higher U.S. import duties on Chinese goods—up to 245% in some cases—compared to 25% on Korean products. Many exporters are attempting to reroute or relabel Chinese goods as Korean to bypass these tariffs.
To combat this, Korea has created a special investigation team and is coordinating with U.S. Customs and Homeland Security, as well as its own intelligence agency. Officials warn that if the fraud continues, it could jeopardize legitimate Korean exports and lead to tougher scrutiny from the U.S.
Examples of fraud include a Chinese mattress company caught last year falsifying certificates of origin and a Chinese-run Korean firm illegally rebranding Chinese battery components as Korean-made.
The U.S. has granted Korea and other allies a temporary 90-day tariff pause—excluding China—adding further incentive for bad actors to exploit Korean trade routes.
