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Almost alchemy: Ring busted in Korea for smuggling gold after converting it to dough

Published: 12 Feb. 2025, 16:42 Updated: 12 Feb. 2025, 18:32

KIM MIN-YOUNG
[email protected]

Photo of confiscated malleable gold bars and a belt that couriers used to smuggle them into Japan [GYEONGGI BUKBU PROVINCIAL POLICE AGENCY]

A criminal ring that tried to smuggle gold bars from Hong Kong into Japan after processing the contraband into lumps of clay was arrested in Korea, police said Wednesday.

The Gyeonggi Bukbu Provincial Police Agency said it booked a total of 39 people and arrested the ringleader, a person in their 40s, on charges of violating the Customs Act.

The ring is charged with smuggling up to 85 kilograms (187.3 pounds) of gold worth 7.4 billion won ($5.09 million). The suspects transported 78 bars of gold between December 2023 and September last year, making a profit of around 700 million won.

The criminals bought gold bars in Hong Kong and processed them with chemicals to make them soft and malleable, like clay. Gold converted into this state is harder to detect and more convenient to carry on one's person, making it easier to pass through customs.

The smugglers’ scheme took advantage of Hong Kong's duty-free gold sales.

The gold clay was sold to handlers in Japan at a 10 percent premium. The handlers then exported the gold back to Hong Kong after converting it back to its solid state, according to police.

The handlers turned a series of profits through tax refunds and more, according to police. The police added that the handlers' exact methods require further investigation.

The gold was smuggled through a transfer flight at Incheon International Airport, where couriers picked it up and later sold it to the handlers in Japan.

The ring reportedly lured couriers into participating in the scheme by offering free trips to Japan and covering all travel expenses, mainly targeting their high school classmates or relatives.

"Although the gold was not brought into Korea after leaving the airport, this act constitutes smuggling under Article 269 of the Customs Act,” said the police.

According to police, exporting foreign goods that have arrived in Korea without going through import clearance procedures is considered illegal reexportation.

The suspects passed through Incheon International Airport to avoid suspicion rather than directly moving the contraband to Japan.

"We will promptly report any newly identified methods to the relevant authorities and work closely with the Korea Customs Service and other related agencies to improve regulations," said the police official.

BY KIM MIN-YOUNG [[email protected]]