The Korea Customs Service found that 10 of 21 importers examined from February through August abused South Korea’s tariff-rate quota system, generating 546.8 billion won in illegal or unfair gains and 58.6 billion won in detected tax evasion. The violations included inflated import prices, shell companies used to secure additional low-tariff quota volumes, and long-term storage in bonded zones. Company A, a banana importer, overstated import prices after the quota tariff fell to 0%, remitted inflated payments to its overseas headquarters and failed to pass about 14% of the tariff reduction through to domestic wholesale prices. Company C used shell companies and fictitious bill-of-lading transfer contracts to obtain quota recommendations and was issued a 25.3 billion won pre-assessment tax notice. Customs inspections also found 292 tons of stockpiled goods, including items held for as long as 137 days. The agency is pursuing tax recovery, penalties and criminal investigations while seeking tighter deadlines, stronger release powers and safeguards against quota monopolization.