Silver smuggling attempts are rapidly increasing in South Korea as international silver prices surge, with seizures in the first quarter already far exceeding last year's total.
According to the Korea Customs Service on Thursday, authorities detected 14 silver smuggling cases worth 4.56 billion won ($3.3 million) in the first quarter of this year. This already surpasses last year's full-year total of 10 cases worth 1.69 billion won, with the value of seized contraband reaching 2.7 times the 2024 figure.
The trend is closely linked to the sharp rise in international silver prices, analysts say. Silver prices climbed from around $30 per troy ounce in early 2024 to $114.88 in early 2025, a surge of more than 232%. Investment demand has shifted toward silver, a relatively affordable precious metal, amid growing global uncertainty, driving prices higher.
The price increase has directly fueled smuggling incentives. Smugglers can pocket larger profits by evading the 3% customs duty and 10% value-added tax imposed on legitimate imports. Authorities are closely monitoring the situation as smuggling could lead to secondary crimes such as money laundering beyond simple tax evasion.
Smuggling methods are becoming increasingly organized and diversified. Common tactics include travelers carrying silver in person or disguising it as personal items such as accessories in express cargo shipments.
Recent cases reveal organized criminal operations. In March, a group was arrested for smuggling 567 kilograms of silver granules worth approximately 3.4 billion won by dividing them into 5-kilogram packages hidden in travel bags and bringing them into the country over multiple trips. The operation reportedly recruited middle-aged and elderly individuals to transport the contraband.
In another case, smugglers attempted to bring in hundreds of thousands of silver accessories by falsely declaring them as metal parts or personal items. Some have disguised silver as commemorative coins, with evasion tactics becoming increasingly sophisticated.
The Korea Customs Service has intensified its response, viewing smuggling as potentially linked not only to tax evasion through undocumented transactions but also to concealment and laundering of criminal funds. The agency plans to expand inspections of travelers' belongings and express and postal cargo while strengthening X-ray screening.
"We will expand investigations to include distribution networks and thoroughly trace and recover criminal proceeds to eradicate silver smuggling crimes," Korea Customs Service Commissioner Lee Myung-gu said.