Blockchain Tech Adopted By Korea Customs Service To Prevent Fraud And Smugglingbr>
The Korea Customs Service (KCS) is planning to adopt advanced technologies in order to improve its customs administration.
During the agency’s first national customs managers’ meeting, KCS commissioner Kim Yung-moon said that adopting new technologies to respond to the ‘fourth industrial revolution’ is an overriding agenda for the agency as trade form is becoming more complicated.
According to the agency, the number of export and import transactions have grown nearly 8 times – from 3 million in 1990 to 27 million in 2017. KCS is planning to build information networks connecting subjects of supply chain through blockchain technology and share information in real time to prevent trade finance fraud and smuggling.
The agency is also planning to establish a big data analysis center in order to enhance the timeliness and accuracy of identifying illegal items. In addition, it will set up a customs clearance system to improve screening and examining high-risk items using artificial intelligence (AI).
In January of this year, KCS claimed in a statement that it had uncovered 637.5 billion Korean won ($596M USD) worth of illegal foreign exchange trading via cryptocurrency markets. At the time, KCS did not give any name of entities that were accused of illegal currency exchange using cryptos, but it gave examples of the largest cases when digital currency was illegally exchanged.
In one case, which also accounts for majority of the alleged amount, the agency said unregistered currency exchanges remitted 472.3 billion Korean won ($443M USD) for customers between South Korea and Australia from March to December last year – transactions facilitated by cryptocurrencies.
Another example involves Japan, where reportedly 53.7 billion Korean won ($50.5M USD) was illegally remitted from Japan to South Korea.