A 48-year-old woman, identified as Ms. G, has been indicted by prosecutors for unlawfully exporting Chinese-made solar components to the United States under the pretense that they were produced in South Korea. The Incheon Main Customs Office revealed on the 12th that they had sent the case to the prosecution, applying charges related to violations of foreign trade laws, customs laws, and trade agreements. From August 2024, Ms. G allegedly exported the components on 19 different occasions, falsely declaring them as domestic products. This was accomplished by declaring the parts as manufacturing materials, which allowed for a waiver on the origin label requirements.

In a further investigation, it was found that Ms. G secured certificates of origin for the products, thus falsely representing them as Korean goods by merely returning the items to their original state or processing them minimally. With the increase of tariffs on Chinese solar products to 50% from 25% in May 2024, Ms. G is believed to have planned to circumvent these tariffs by routing exports through South Korea to take advantage of the free trade agreement benefits, which enable a 0% preferential tariff rate.

In response to increasing instances of illegal exports related to the U.S.'s high tariff policies, the Incheon Main Customs Office established a Trade Security Investigation Unit composed of 10 staff members in December of last year. A representative from the customs office stated that there would be focused operations to combat violations involving false indications of origin and other trade security breaches, underlining the seriousness of this issue in trade practices and customs enforcement.