Secret 'Jjaktung' Sales Scene Caught in the Heart of Myeongdong

Jung-gu District Uncovers Secret Store Selling Counterfeit Goods Worth Hundreds of Millions of Won in the Heart of Myeongdong

Special Crackdown Planned Ahead of Spring Tourism Peak Season

Promotion of Self-Regulation Functions Including Distribution of ‘Illegal Industrial Products Eradication Guidelines’

[Asia Economy Reporter Park Jong-il] Seoul’s Jung-gu District (Mayor Kim Gil-seong) uncovered a group selling counterfeit goods (commonly known as ‘jjaktung’) in the heart of Myeongdong on the 2nd of this month.

The store under investigation strictly restricted access to locals and secretly secured a separate location to evade inspections, selling over 120 counterfeit items of brands such as Louis Vuitton, Chanel, Herm?s, and Prada. The value of these items at genuine prices amounts to hundreds of millions of won.

To catch the counterfeit goods sales scene, the district deployed mystery shoppers (undercover customers). Subsequently, special judicial police who had been lying in wait raided the secret store. The suspects and seized items will be sent to the responsible prosecution office upon completion of the investigation.

With the increase in foreign tourists due to the COVID-19 endemic and the combined effects of economic recession and rising luxury consumption, the sale of counterfeit goods has resurged in Seoul’s Myeongdong, Dongdaemun, Namdaemun, and other areas.

Under the current Trademark Act, distributing or selling counterfeit products is punishable by up to seven years imprisonment or a fine of up to 100 million won.

Last year, the district seized 6,375 illegal counterfeit items, equivalent to a genuine product value of 3.6 billion won.

Jung-gu plans to conduct large-scale special crackdowns centered on tourism special zones such as Myeongdong, Namdaemun, and Dongdaemun during the spring and autumn peak tourism seasons when counterfeit product distribution is rampant. Joint task forces will be formed with related organizations including the Korean Intellectual Property Office, Jungbu Police Station, and Seoul City to actively respond to the increasingly sophisticated, organized, and covert distribution and sale of counterfeit goods.

Additionally, the district will strengthen promotional activities encouraging voluntary self-regulation by distributing the ‘Illegal Industrial Products Eradication Guidelines.’

Kim Gil-seong, Mayor of Jung-gu, stated, “We will eradicate the distribution of illegal counterfeit goods rampant in Seoul’s representative tourist spots such as Myeongdong, Namdaemun, and Dongdaemun to protect consumers and merchants,” adding, “We will create a tourism environment conducive to shopping and enhance the image of Jung-gu’s major commercial districts.”