[Report] Despite Increased Crackdowns... Rolex Sells for 140,000 Won in Dongdaemun Fake Goods Market

Near Subway Exit, Saebit Market
Over 100 Yellow Canopies Packed
'Erusha' Wallets and Bags Especially Popular
Young Men and Couples in Their 20s and 30s Roam
Counterfeit Golf Wear Attracts People in Their 40s and 50s

Near Dongdaemun History & Culture Park Station on Seoul Subway Line 4, tents are lined up in a long row.

[Asia Economy Reporter Jeon Jinyoung] At 12:30 a.m. on the 13th, more than 100 yellow tents were densely set up near exits 1 to 3 of Dongdaemun History & Culture Park Station in the Seoul subway. On one side of the street, market vendors’ vans lined up in a tailgating parking style to avoid parking enforcement. This place is the so-called “fake goods mecca,” Saebit Market.

On that day, men in their 20s and 30s who came with friends, couples, and families with children strolled the streets carrying black plastic bags filled with purchased items in both hands. A man in his 20s who came with friends said excitedly, “If we had bought the real (authentic) products, we would have spent about 10 million won.” The items varied from clothes, watches, perfumes, hats, to shoes. A Rolex Submariner blue dial combo, which retails for 18.8 million won, was sold for 140,000 won. The combination of gold and blue, the “Submariner” engraving inside the watch, and the Rolex engraving were very similar to the authentic product, making it hard to distinguish at a glance. An Isabel Marant hoodie priced at 300,000 won was sold for 60,000 won, and a Thom Browne cardigan was available for 30,000 won. In the case of clothes, not only the brand labels but also tags inside were attached.

Luxury bags such as Yves Saint Laurent, Celine, and Gucci sold at Saebit Market.

Following the “EruSha (Herm?s, Louis Vuitton, Chanel)” craze, stores selling Chanel, Louis Vuitton, and Prada wallets and bags were especially popular. Louis Vuitton half wallets came with cases identical to the authentic ones and included certificates of authenticity. Stores selling fake golf wear attracted people in their 40s and 50s. Vendors sold PXG pants and skirts for 40,000 won. When a woman in her 50s looking at a PXG skirt said, “I’d like to try it on,” the vendor replied, “If you go up the hill, there is a place where you can change clothes. You can try it on.”

However, due to the prolonged COVID-19 pandemic, the number of foreign customers decreased and enforcement intensified, making vendors sensitive. A vendor smoking next to a tent complained, “Business is really bad today. I have to think that at least I earned enough to pay the electricity bill.” According to Article 108 of the Trademark Act, selling counterfeit goods is a clear violation as it infringes trademark rights. However, counterfeit transactions are gradually becoming more active through offline shops and private transactions.

According to the Korean Intellectual Property Office, the number of reports and tips on counterfeit goods increased from 5,557 cases in 2018 to 6,864 in 2019, and surged to 16,935 cases in 2020. According to luxury commerce platform Trenbe, after inspecting 18,321 luxury products consigned for sale over the past six months, 391 items (about 2.13%) were found to be counterfeit. The brands with the highest number of counterfeit discoveries were Gucci (25.8%) and Louis Vuitton (22%).

Counterfeit goods enforcement at Saebit Market falls under the jurisdiction of Jung-gu Office. They conduct enforcement 2 to 3 times a week, and all products seized during enforcement are confiscated, but they say it is difficult due to manpower shortages. A Jung-gu Office official lamented, “We only have three staff members, so it’s hard to conduct enforcement even 2 to 3 days a week,” adding, “Even when enforcement is carried out, the vendors don’t care at all.”