Wine importers caught underreporting prices, evading $1.7 million in taxes

South Korean authorities have busted a ring that allegedly underreported the import prices of 180,000 bottles of wine, including some valued at 12 million won ($8,700 USD) each. The group is accused of evading 2.4 billion won ($1.7 million USD) in taxes.

The Seoul Main Customs Office announced on March 26 that it had transferred three individuals involved with an online wine retailer to prosecutors on charges of violating the customs law. The office has also initiated procedures to collect 4.1 billion won ($3 million USD), including surcharges.

Authorities allege that from March 2022, the group imported approximately 188,000 bottles of wine worth 16.7 billion won ($12 million USD) through an online shopping mall operated by a German subsidiary. They are accused of declaring the import price at about 11.6 billion won ($8.4 million USD), roughly 70% of the actual cost.

This method was used to bypass South Korea's prohibition on online alcohol sales. The German subsidiary allegedly issued false invoices with understated prices, which the parent company then used to declare lower import values to customs. The Korea Customs Service estimates the tax evasion at 2.4 billion won.