[Interview] Jihwan Kim, CEO of Alibaba Partners: "Alibaba Trademark Dispute Threatens Our Right to Survive" [Choi Seokjin's Law & Biz]

Won All Seven Past Trademark Disputes with Alibaba
Calls for Creating an Environment Where Local Companies Can Survive

Jihwan Kim, CEO of Alibaba Partners Inc.

"Claiming that trademarks that have been properly registered and used for years based on the Patent Tribunal's decisions are now invalid is an infringement on our right to survive."

On June 12, Jihwan Kim, CEO of Alibaba Partners Inc., expressed strong dissatisfaction regarding Alibaba's recent requests for trademark invalidation and cancellation trials.

He argued that, despite the challenging environment for running a small and medium-sized business, his company has persevered for nearly ten years, continuing to expand its operations. He believes it is unfair for Alibaba, with its overwhelming capital power, to claim his trademarks are invalid as a means to enter the domestic market.

He appealed for government-level measures to protect domestic companies from the incursion of Chinese capital into the Korean market.

The following is a Q&A with CEO Kim.

-What kind of company is Alibaba Partners?

▲Alibaba is the name of the protagonist in the folktale "Alibaba and the Forty Thieves." In 2013, we applied for the "Alibaba" trademark and registered it the following year. In 2016, we began our food and beverage business in earnest. As a homegrown company founded on a variety of food products, Alibaba Partners operates several domestic food and beverage franchises, including Alibaba Coffee & Donut, Alibaba Burger, Alibaba SsoqSsoq Gimbap, Alibaba Chicken, and Alibaba Unmanned Robot. We are a young brand managing multiple food and beverage-related franchises in Korea.

-It is said that you invested billions of won in developing the unmanned robot cafe.

▲The COVID-19 pandemic brought many changes to our lives. With social distancing, rising labor costs, and a worsening labor shortage, we determined that developing unmanned automation platforms for the food and beverage market was essential. However, we failed to fully consider the unique characteristics of Korea's service industry, which prioritizes customer satisfaction. Developing and commercializing the unmanned automation system required significant time and expense, and we faced unexpected trial and error, making it difficult for a small company to handle alone.

-What is your position on the current trademark dispute?

▲Since registering our trademark in 2014, Alibaba Partners has been involved in seven trademark disputes with Alibaba Group Holding Limited since 2016, and we have won all seven cases. The subsequent trademark registrations with the Korean Intellectual Property Office were legitimate, and we believe it is unjust to challenge them again. Recently, the global popularity of K-Culture has brought significant attention to Korean food (K-Food) worldwide, greatly impacting both domestic and international markets. Alibaba's current request for a trial appears to be a preliminary move to monopolize the domestic market using its financial power. This threatens the survival of Alibaba Partners, which has legitimately registered its trademarks and operates its business based on them in Korea.

-What do you expect from the government?

▲China is seeking to enter overseas markets to address the limitations of its domestic economy and issues of overproduction. Among these markets, Korea is considered the most strategically suitable target. Alibaba is partnering with Shinsegae to sell Chinese products more efficiently through Korea's distribution network. The combination with domestic brands trusted by Korean consumers could transfer that trust to Chinese products, leading Korean companies to become increasingly dependent on foreign capital and creating an environment where local companies can no longer survive. In addition, Korea currently provides an environment in which Chinese products can easily enter the market, such as through tariff exemptions. I hope the government will introduce systems, as seen in Europe and Japan, that use non-tariff barriers to ensure Chinese products are distributed fairly in the domestic market.