5-Year Imported Luxury Counterfeit Market Size 2 Trillion KRW
Rolex 306.5 Billion KRW 1st Place... Most from China
The scale of counterfeit luxury goods imported from overseas has exceeded 2 trillion won over the past five years. Last year, the amount seized increased by about 2.5 times compared to the previous year. Among the brands, Rolex was found to be the most frequently counterfeited.
On the 11th, based on data received from the Korea Customs Service, Yang Kyung-sook, a member of the Democratic Party of Korea, analyzed that the scale of intellectual property rights-infringing goods seized by customs authorities while entering the country from overseas between 2018 and 2022 amounted to 2.2405 trillion won (7,250 cases, market price basis).
The so-called counterfeit goods falsely labeled with trademarks and the like exceeded 2 trillion won, with the amount seized last year reaching 563.9 billion won, a sharp increase of 141.1% compared to 2021 (233.9 billion won).
Rolex, 306.5 billion won worth of counterfeits over 5 years... Surpassing Louis Vuitton
Rolex Submariner Oyster (not directly related to the article content)
Among brands, the watch brand Rolex topped the list with 306.5 billion won worth of counterfeits seized over five years, surpassing Louis Vuitton. Other luxury brands frequently seized included Louis Vuitton (219.7 billion won), Chanel (97.4 billion won), and Burberry (83.5 billion won).
By country of import (origin), goods from China accounted for the largest share at 1.921 trillion won (85.7%) over five years. Counterfeit luxury goods also entered from Japan (30.7 billion won), Hong Kong (12 billion won), the United States (9.5 billion won), and Vietnam (3 billion won).
Watches were the most common item at 920.1 billion won, followed by bags (622.2 billion won), textile clothing (221.8 billion won), and shoes (92.3 billion won). Watches, bags, and textile clothing accounted for 78.7% (1.7641 trillion won) of the total intellectual property rights-infringing goods over five years.
Trademark law violation: imprisonment up to 7 years or a fine up to 100 million won
In September last year, the Western Busan Police Station arrested seven distributors who attempted to sell counterfeit Chinese luxury goods domestically. [Photo by Yonhap News]
The current 'Trademark Act' protects intellectual property rights by punishing those who infringe trademark rights or exclusive usage rights with imprisonment of up to 7 years or a fine of up to 100 million won.
The 'Foreign Trade Act,' which applies to false origin labeling, stipulates criminal penalties of imprisonment up to 7 years or fines up to 100 million won depending on the severity of the act, as well as administrative measures such as corrective actions and imposition of surcharges.
Representative Yang Kyung-sook pointed out, "As luxury consumption increases, the counterfeit market is also rapidly growing," adding, "Since the scale of intellectual property rights goods seized upon domestic import has doubled in just one year, proactive measures by customs authorities are necessary."
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