Demand for drugs is rising in Taiwan as the holiday season approaches, a police officer told AFP.
A 32-year-old man was arrested, the officer said, adding that police were hunting other suspects.
Taiwan police in May seized 450 kilograms of ketamine valued at around Tw$300 million ($10 million).
Authorities have been cracking down on ketamine trafficking amid concern at the level of drug abuse among students and the health dangers of the drug.
Ketamine abuse can lead to a shrivelled bladder, shortness of breath, heart problems, cognitive impairment and mental problems.
Under Taiwan's anti-drug laws, manufacturing, transporting and dealing in ketamine are punishable by a minimum of five years in prison.