IZUMISANO, Osaka -- A group of men have been arrested for allegedly trying to smuggle some 160 kilograms of gold bullion, worth an estimated 1.5 billion yen (about $9.48 million), through Kansai International Airport in an attempt to evade sales tax payments, law enforcement agencies including Osaka Prefectural Police announced on Jan. 9.

According to the Osaka Customs' Kansai Airport branch, the amount of gold bullion in this latest case is second largest among seizures at airports and ports in Japan, following the 233 kg confiscated at Chubu Centrair International Airport in 2017.

The five suspects, including South Korean resident Jo Sang-yon from the city of Saitama's Minuma Ward who reportedly acted as the group's leader, are accused of violating the Customs Act and the Consumption Tax Act, among other allegations.

The five allegedly hid 160 gold bars in air cargo arriving from Hong Kong on Jan. 11, 2024, to evade paying 148.41 million yen (some $940,000) in consumption tax (including local sales tax). There are also suspicions that they smuggled about the same quantity in 2023 to 2024, avoiding tax payments. Jo is quoted as telling authorities, "I don't want to answer."

According to the Ministry of Finance, the price of gold has skyrocketed, and smuggling has surged as selling the gold while evading sales tax payments can yield profits equivalent to the tax amount.

The Kansai Airport Branch Customs reported that the suspects hid the gold bullion, stored in cases, in gaps within carts loaded with cosmetic items. Customs officers discovered suspicious shadows during an X-ray inspection, and further investigation of the carts uncovered a large quantity of gold.

The prefectural police's international investigation division believes the five divided and coordinated roles such as communicating with accomplices in Hong Kong, transporting the gold from Kansai Airport to a warehouse in Osaka, selling it to buyers and transferring payment proceeds.

In the first half of 2024, customs nationwide seized 937 kg of gold, an 8.1-fold increase compared to the same period the previous year. Of this, 812 kg, or about 90% of the total, came from cargo originating in Hong Kong.

(Japanese original by Tadakazu Nakamura, Izumisano Resident Bureau)