Technology

A Korean company used to smuggle $11.6 million worth of U.S.-made chips to China.

2024-01-30 01:33:35

Seoul's main customs office announced that for three years, since August 2020, South Korean individuals operating "Company A" had been smuggling semiconductor integrated circuits produced in the United States. To China More than 96,000 U.S.-made items valued at $11.6 million were smuggled into China through South Korea. This company is a legal distributor of foreign electronic components in the country. According to a report from BusinessKorea on January 25th.

According to customs information, These individuals operate Company A and purchase communication semiconductor IC chips produced by a well-known American semiconductor company. and imported for domestic use through a telecommunications equipment development company.

The chips were smuggled into China on 144 air shipments without being declared to customs. Company A tried to avoid suspicion by ordering more chips than necessary from official distributors. and smuggling surplus chips into China in small batches. Disguised as a sample product the income from chip sales was concealed by submitting fake documents to the bank. Incorrectly reporting the value of components to customs and using various methods such as money laundering

The chip is a chip designed to convert analog signals to digital. Subject to export and import restrictions. Because it has the potential to be used in the production of weapons of mass destruction.

Currently, the CEO and 40 executives of Company A have been transferred to the District Prosecutor's Office in Seoul. without being detained on charges of violating foreign trade laws Customs laws and laws governing the concealment of criminal proceeds. It's unclear where the smuggled chips end up when they arrive in China. Chips have been smuggled into China many times. But this time was the highest-value arrest.