Wine importer faces seizure of 4.1 billion won for tax evasion using fake invoices

South Korean customs authorities have uncovered a tax evasion scheme involving a wine importer who allegedly underdeclared the value of high-end wines, including the prestigious 'Romanee Conti,' to avoid paying taxes. The Seoul Main Customs Service announced on the 26th that it has begun seizing approximately 4.1 billion won, including penalties, from a group of online wine sellers accused of evading about 2.4 billion won in taxes through the use of fraudulent invoices.

The suspects reportedly established an online shopping mall in Germany to bypass South Korea's regulations prohibiting online alcohol sales. They are accused of underreporting the import prices of wines, declaring them at approximately 70% of their actual value. Over a four-year period starting March 2022, the company imported 188,000 bottles, valued at around 16.7 billion won, but declared them to customs at 11.6 billion won. This scheme included ultra-premium wines, some priced as high as 12 million won per bottle, like 'Romanee Conti.' The company allegedly deceived customers by presenting these sales as if they were conducted at normal import prices, pocketing the difference from the taxes paid.

Seoul Customs has taken measures to secure the assets of the accused, including real estate and bank accounts, to ensure the collection of the evaded taxes. The individuals involved have been referred to the prosecution on charges of violating the Customs Act. "Acts of manipulating import prices using overseas local corporations cause losses to national finances and simultaneously deceive both buyers and honest importers," stated Jo Jae-min, head of the Digital Trade Crime Investigation Division at Seoul Customs. "We will respond strictly to acts of import price manipulation."

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Acts of manipulating import prices using overseas local corporations cause losses to national finances and simultaneously deceive both buyers and honest importers. We will respond strictly to acts of import price manipulation.