1.     Reporting Date

Nov, 28, 2023

2.     Reporting Media

https://n.news.naver.com/article/421/0007202150?lfrom=kakao 

3.     Reporting Contents

(Suwon=News1) Reporter Hyeon-Kwon JIN = 11 individuals who violated trademark laws by engaging in activities such as selling counterfeit luxury goods on the social media platform TikTok or leasing entire commercial buildings to distribute and store millions of dollars' worth of counterfeit luxury items have been apprehended by the Gyeonggi SJP Unit of Fair Trade. 

Kwang-Doek, KIM, the head of the Gyeonggi SJP Unit of Fair Trade, announced at a press conference held at the provincial government office on the morning of the 28th, "As a result of an investigation into trademark law violations from September 4 to November 24, A and 10 others who infringed on overseas luxury trademark rights such as 'Chanel' and 'Louis Vuitton' were apprehended. Eight of them have been referred to the prosecution, and the remaining three, who are still under investigation, will be sent to the prosecution once the investigation is concluded."

During the confiscation process, the police seized approximately 2,850 counterfeit items, including clothing and perfumes, valued at 1.8 billion won at genuine prices.

According to the investigation, individual A (53) initially registered as a seller on Guri Wholesale Market e-Mall after declaring as a tele communication business at Guri city and sold the vegetable cultivating from the vegetable farm in Chungcheongbuk-do, but turned to selling counterfeit goods when profits were insufficient. From June 4 to September 19, A sold fake products worth 17 million won at genuine prices through about 230 transactions with domestic consumers. These counterfeit items such as clothing, perfumes, tumblers, wallets were smuggled from Vietnam.

A conducted sales through live broadcasts on TikTok, and in an attempt to evade detection, used packaging boxes labeled '00 Vegetable Farm' when sending out products via courier. The Gyeonggi SJP Unit of Fair Trade conducted a raid action on the location in Eumseong, Chungbuk, where A stored 529 counterfeit items (worth 270 million won based on genuine prices) and seized them.

Individual B (64, female) leased for short term a large commercial building (with first and second floor area of approximately 390 square meters) in Gimpo from October 15th to January 14th of next year. Subsequently, B purchased around 1,150 counterfeit luxury clothing and perfumes such as 'Moncler' and 'Dior' for 800 million won based on genuine prices from a wholesale retailer in Dongdaemun. Despite meticulous efforts to conceal the interior of the building with camping equipment advertising sheets for panels and blackout, B was caught during a surprise raid by the Gyeonggi SJP Unit of Fair Trade. B admitted to storing the purchased counterfeit luxury items for distribution to wholesale dealers through TikTok broadcasts.

8 individuals, including C (51, female), operated women's clothing stores in apartment complexes and densely populated areas, where they were caught displaying and storing 178 counterfeit clothing and bag items of ‘GUCCI’ and ‘CELINE’ (worth 285 million won based on genuine prices) alongside genuine products for sale.

Individual D (42, female), involved in the cosmetics distribution industry as a naturalized citizen, imported around 1,000 counterfeit items including clothing, hats, and bags from Vietnam, valued at 500 million won based on genuine prices. D stored these items in bulk in a warehouse and was caught selling them to domestic consumers and foreign residents in South Korea through Facebook and TikTok broadcasts.

Kwang-Doek, KIM, the head of the Gyeonggi SJP Unit of Fair Trade, emphasized that "the smuggling routes for counterfeit goods infringing on trademark rights are diversifying from China to various countries, including Vietnam." He added, "Trademark infringement not only harms the national image but also causes significant damage to genuine sellers and consumers who go through official import procedures, leading to material losses for consumers due to the deterioration in the quality of the products."

Thanks for the review.