Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Korea shipped Russia $121M worth of cars over 3 years despite sanctions – Full Analysis.
Published: 12 Mar. 2026, 12:52
Used cars are tightly packed at a secondhand-car export complex in Yeonsu District, Incheon, on March 8 as exports to the Middle East, the region that accounts for roughly one-third of Korea’s total used-car exports, face disruptions amid the ongoing U.S-Iran war. [YONHAP]
Nearly 4,000 vehicles worth a combined 179.6 billion won ($121.2 million), mostly luxury models, were illegally exported to Russia from Korea over the past three years despite automotive sanctions, authorities here said Wednesday.
A total of 3,705 cars were mostly falsely declared as being destined for countries neighboring Russia, including Kazakhstan and Kyrgyzstan, but were ultimately transported to Russia between 2023 and 2025, in violation of export controls imposed after the Russian invasion of Ukraine, the Korea Customs Service (KCS) said.
Korea has banned exports of vehicles with engine displacements of 2,000cc or more, as well as luxury cars valued above $50,000, to Russia and Belarus, in line with similar sanctions imposed by major economies, such as the European Union and the United States.
“As a responsible member of the international community, we plan to thoroughly investigate illegal exports that violate export controls and eradicate such practices to enhance national credibility and export competitiveness,” said Lee Myeong-gu, a KCS chief, in a press release.
The agency added that it will operate a strengthened enforcement system centered on a dedicated trade security investigation unit established in April last year to crack down on such violations.
Yonhap