Suspected personal customs clearance code misuse quadrupled in two years

Reports of suspected misuse of personal customs clearance codes more than quadrupled in two years to 71,440 last year, Korea Customs Service data showed Sunday.

Another 33,545 reports were filed in the first eight months of this year. The annual total rose from 16,355 in 2023 to 24,741 in 2024, before jumping to 71,440 last year.

A PCCC is an identification code used when goods purchased directly from overseas go through customs clearance. It is used instead of a resident registration number.

If disclosed to others, the code can be misused during the customs clearance process. The KCS said increases in overseas direct purchases have been accompanied by more cases of PCCC misuse, including cases involving tax evasion or narcotics smuggling.

In response, the KCS began trial operations of an “e-commerce customs clearance platform” on Aug. 28, featuring functions to prevent PCCC misuse.

The platform introduces a system requiring shoppers to enter a one-time authentication code sent by email or text message along with their PCCC for each overseas direct purchase.

The requirement applies to users who newly obtain a PCCC or change their registered details from Aug. 28, and to existing users when they renew their codes.

Existing users can continue ordering with their PCCC alone until renewal. Shopping platforms with KCS-approved identity verification systems are exempt from requiring shoppers to enter either code.

However, the KCS acknowledged that even when PCCC misuse is identified, it can be difficult to determine where the personal information was leaked.

“It is difficult to determine how the misuse occurred,” a KCS official told Yonhap News Agency. “Given the recent rise in overseas direct purchases, the code may have been leaked through both overseas and domestic platforms.”

Experts stressed that preventing secondary damage from personal data leaks requires not only protective measures by the government and organizations handling personal information, but also prompt action by individuals who discover that their information has been misused.

“The government and organizations handling personal information should take care to prevent personal information from being leaked, but individuals also need to act promptly, such as by changing their customs clearance code if they discover that their information has been compromised,” said Choi Kyoung-jin, a professor of law at Gachon University.