[The Editors' Verdict] The Charges Behind "Kim Keonhee's Necklace"

Kim Keonhee’s NATO Necklace Counterfeit Explanation
An International Embarrassment Revealing Disregard for Intellectual Property
Ostentatious Counterfeit Consumption: You May Fool the World, But Not Yourself

There were more than a few people who scoffed at Kim Keonhee's explanation regarding the "Van Cleef & Arpels necklace" she wore at the North Atlantic Treaty Organization (NATO) summit in June 2022, claiming it was a counterfeit purchased in Hong Kong 20 years ago for about 2 million won. The lie was quickly exposed, and now there are even indications that an attempt was made to fabricate evidence by preparing a fake version of the necklace, making the situation all the more absurd.

Kim claimed the necklace was a counterfeit in an attempt to avoid charges of violating the Public Service Ethics Act or accepting bribes. However, for the First Lady of the world’s sixth-largest exporting nation to lie about wearing a luxury knockoff is an international embarrassment. It blatantly reveals a disregard for intellectual property (IP) rights.

The European Union (EU), a central participant in the NATO summit Kim attended with former President Yoon Sukyeol, strictly prohibits counterfeit transactions. Not only are manufacturers and sellers of counterfeits punished, but buyers as well. In France, where the Van Cleef & Arpels headquarters is located, IP law has been enforced since 1994, and consumers who purchase or possess counterfeits can face fines of up to 300,000 euros (about 500 million won) or imprisonment for up to three years. The French government views profits from the manufacturing and sale of counterfeits as flowing into criminal organizations, and therefore punishes counterfeit consumers harshly. In Spain, where the NATO summit was held, buyers of counterfeits can be fined approximately 3,400 dollars (4.7 million won).

In contrast, in Korea, only manufacturers and sellers of knockoffs can be punished under the Trademark Act, with a maximum penalty of up to seven years in prison or a fine of up to 100 million won. There are no legal provisions for punishing buyers of counterfeits. This may explain why Kim’s side returned the authentic necklace received from Sehee Construction in preparation for a special investigation and calmly prepared a counterfeit version.

Although it is unclear where Kim’s side obtained the counterfeit necklace, it is uncomfortable to witness the prevalence of counterfeit consumption in our society. A recent two-part series by this newspaper, [The Invasion of Counterfeits], reported that a Chanel bag purchased for 130,000 won on the Chinese video platform TikTok was appraised at 8.8 million won by a staff member at a secondhand trading platform. Readers who saw the article responded with comments such as “It’s okay to buy counterfeits.” While this is partly a criticism of luxury brands’ high pricing policies, it is also another expression of the desire for luxury brands that are not easily attainable. In fact, some even inquired about where to purchase such items.

The global counterfeit market is estimated to have recently surged to a scale of 2,000 trillion won. Counterfeits produced by exploiting cheap labor in countries such as China, Hong Kong, and Southeast Asia are openly traded across borders through the e-commerce market. Demand is the primary driver of the counterfeit market. According to a report by Michigan State University in 2023, titled “Global Anti-Counterfeiting Consumer Survey,” 74% of global consumers have purchased counterfeits, and more than half of them (52%) knowingly bought fakes.

French sociologist Pierre Bourdieu described luxury consumption as “distinction.” Luxury goods serve as visual markers for the upper class to differentiate themselves from other social classes, functioning as a kind of social stratification strategy. There is no intention to criticize consumers for spending their money or for aspiring to belong to the upper class. However, it is right to criticize those at the pinnacle of power who collect luxury goods through others or attempt to distinguish themselves by using counterfeits. Counterfeits may deceive the world, but at the very least, they cannot deceive oneself.