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An overview by Yulchon, Taxand South Korea
Tax experts from our South Korean member firm Yulchon – Jeong Cheol, Se Hoon Park, Hyung Bae Kim, Chang Hee Seo, and Ja-Young Lee have recently co-authored an article in the 2025 AMCHAM (American Chamber of Commerce) Quarterly Magazine on preparing for the new Taxpayer Verification System and its impact on customs audits.
The article discusses a new taxpayer verification system, introduced through a customs law amendment on 10 December 2024, which takes effect in 2028. This system allows importers with annual receipts under USD 30 million to opt for verification as “good-faith customs taxpayers,” replacing traditional audits with monthly confirmations of declarations.
Although not yet in force, the Korea Customs Service is already increasing audits on eligible importers. From 2025, audits will expand to include lower-volume importers, meaning businesses previously exempt may now face scrutiny. To prepare, they suggest businesses should assign a manager, ensure accurate reporting, maintain records, and seek expert advice. With audits expanding, foreign-invested subsidiaries and importers must act now to ensure compliance and mitigate risk.
You can read the full article here.
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