Analysis of Trade Fraud in Korea: Trade settlement fraud and shipping fraud

Abstract

Purpose : The purpose of this study is to analyze trade fraud cases and present pre- and post-measures to prevent risks and damage to trade traders. It also aims to help revitalize exports and imports by presenting practical and policy implications. Research design, data and methodology : This paper is Along with a literature, review, this study focuses on the Kotra’s trade fraud cases from 2017 to 2021. Results : According to the analysis results, payment fraud is unpaid in long-term transactions based on trust, extension of payment date, suspension of transactions due to change of representative, company liquidation, and payment avoidance. Examples of defective shipments include fraud cases of non-existent companies and product shipping cases different from the contents of the contract. Conclusions : As a result of the study, pre- and post-counter measures for trade fraud are presented. The practical implications are that it is possible to provide major guidelines to trade traders by raising awareness of trade fraud and improve stable and continuous competitiveness. Policy proposals and implications are to establish a system to prevent trade fraud through briefing sessions and education, development and competition of educational programs, and pan-government cooperation.