The Korea Customs Service said it had found almost 17,500 of the capsules being smuggled into the country from China since August 2011.
The powdered flesh, which officials said came from dead babies and foetuses, is reportedly thought by some to cure disease and boost stamina. But officials said the capsules were full of bacteria and a health risk.
"It was confirmed those capsules contain materials harmful to the human body, such as super bacteria. We need to take tougher measures to protect public health," a customs official was quoted as saying by the Korea Times.
Ministry spokesman Deng Haihua, quoted at the time in China Daily, said China had "strict management of disposal of infant and foetal remains as well as placentas".
South Korea says it will increase customs inspections targeting capsules containing powdered human flesh.
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