South Korea has banned the export of vehicles to Russia and Belarus with engine capacities of 2,000 cc and above, as well as luxury cars costing over $50,000, keeping pace with sanctions imposed by leading global economies, including the EU and the USA.
The head of the Korean Customs Service, Lee Myung-koo, emphasized in his press release: "As a responsible member of the international community, we intend to thoroughly investigate cases of illegal exports that violate export control and eradicate such practices to enhance the country's reputation and the competitiveness of our exports."
Additionally, the agency announced the implementation of an enhanced control system based on a special unit for investigating trade security issues, which was established in April of last year to combat such violations.
Reference Information:
In South Korea, companies often purchase luxury cars such as Mercedes, BMW, Porsche, Ferrari, Lamborghini and register them as company vehicles. The costs of purchase, leasing, maintenance, and fuel are deducted as business expenses, which reduces taxable income.
However, such vehicles are typically changed every 2–3 years, after the lease ends or when the main depreciation deductions are completed. Keeping a car longer becomes unprofitable, as the tax benefits have already been realized.
These cars are put up for sale, but due to the large influx of corporate vehicles, there is an oversupply in the domestic market, leading to a decrease in prices. Exporting becomes a way to sell them at a higher price, with primary buyers being clients from Central Asia, Russia, Mongolia, and the Middle East.
