- Volume 50
This study represents the current situation on the Korean Government's investigation into the imports with the infraction of the country of origin indication law, showing how much those imports affect the purchasers as well as the domestic competitors in Korea. According to the HS 4 unit, the range of imports with the country of origin indication should be 55.2% of all imports, but it turned out there were actually 87.6% of them, according to the number of the import declarations in the first half year of 2010. The government's investigation on the infraction of the country of origin indication is conducted in the stages of customs and distribution into market. As a result of recent 4 years government's investigation into the imports with the infraction of the country of origin indication, the rate of inspection was averagely 3.6% of the reported number of imports in the stage of customs, the rate of the infraction of the country of origin indication cases was 0.14% of the total reported number, and 3.85% of the total actually inspected number. The investigation in the stage of distribution was below 20% level of the stage of customs inspection, on the number of caught cases basis. A survey of 4 categorized imports such as Watches, Tools, Glasses frames, and Clothes, which are assumed to happened frequently with the infraction cases, shows that the decreased sales rate of the domestic competitors was averagely 18.8% and the extent of the damage on consumers was 34.7% of the purchased prices, with both rates resulted from the investigation in the stage of distribution into market.