By Lee Seong-woo

Vice president, Korea Chamber of Commerce and Industry

"I'll keep changing it for you." This tagline from a global shopping website's free return policy ad recently stirred up controversy here. Despite receiving a warning from the government for its misleading ad, the e-commerce platform managed to climb to second place among the country's most popular shopping apps. But this surge in overseas direct purchases is not all rosy -- it in fact comes with a fair share of risks, particularly the potential influx of harmful goods, especially narcotics, being sneaked in through cross-border shipments.

South Korea is not sitting idle, though. We are leveraging our digital innovations to modernize our customs administration and keep pace with today's fast-changing trade landscape. Our commitment is to streamline clearance processes, beef up security and set global standards in customs and trade.

The UNI-PASS system is a case in point. Built on Korea's technological prowess, this automated, all-in-one customs clearance system has been exported to 14 countries, raking in $313 million in total revenue. This global recognition has put Korea on the map as a global standard-bearer in customs administration. Furthermore, Korea has embraced cutting-edge technologies like AI-powered CCTV, image recognition and advanced antidrug inspection tools. By automating processes and digitizing unstructured data, we are leading the charge in global digital innovation for customs.

Our government has been pushing things even further, driving forward initiatives including intelligent clearance inspections, state-of-the-art AI applications, robotics-based process automation and digitalized supply chain management to boost trade security. Such efforts have paid off, helping Korea secure seventh place in the World Bank's 2023 Logistics Performance Index.

As a technological powerhouse, Korea should step up on the world stage and contribute more to the international community. One area where we can truly shine and benefit from is modernizing global customs clearance, which would lead to greater exports. Origin verification, while crucial for free trade agreements, has been a headache for many Korean companies. Some FTAs do not even allow for retroactive preferential treatment common in such deals, potentially leaving our businesses out of pocket. Korea's digital innovations could help solve this issue if widely adopted.

On that note, it is equally important to strengthen our ties with ASEAN, a key player in diversifying our supply chains. While ASEAN countries have recently made progress in streamlining customs processes through initiatives like the ASEAN Single Window, there is still work to be done. In some areas, digital adoption lags behind, with paper certificates of origin still required. This gap speaks to the need for faster international cooperation.

I am confident that Korea is perfectly positioned to lead this charge, especially as we gear up to host the Asia-Pacific Economic Cooperation in 2025. While the APEC Economic Leaders' Meeting is certain to grab headlines, we should not overlook the vital input from the private sector at the APEC CEO Summit and APEC Business Advisory Council. As next year's host and a leader in customs sophistication, Korea should lead discussions on economic liberalization and digital customs. We must also take the helm in the Sub-Committee on Customs Procedures' dialogue on APEC regional customs administration. By pushing for innovation in customs, we are not just creating opportunities for Korean businesses – we are paving the way for our export-driven economy to thrive in the digital era.

Lee Seong-woo is the vice president of the Korea Chamber of Commerce and Industry and commissioner of the Korea Customs Smart Innovation Advisory. The views expressed in this column are his own. -- Ed