Korean Wave Dampened by Crackdown: 140,000 Counterfeit Items Seized Last Year

The Intellectual Property Office announced on January 14 that it cracked down on trademark infringement and the distribution of counterfeit goods last year, seizing approximately 143,000 counterfeit items and referring 388 individuals involved in trademark infringement for criminal prosecution.

The genuine value of the seized counterfeit goods amounted to about 432.6 billion won, representing a 32-fold increase compared to the previous year. The number of individuals referred for criminal prosecution for trademark infringement also rose by 26% year-on-year. Analysts attribute this surge to the growing popularity of the Korean Wave, which has led to increased manufacturing and distribution of counterfeit goods.

Major enforcement cases by the Special Judicial Police for Trademarks. Provided by the Intellectual Property Office

Over the past five years, the annual figures for criminal prosecution and the scale of seized items (in terms of genuine value) are as follows: in 2021, 557 individuals and 78,061 items (worth 41.51 billion won); in 2022, 373 individuals and 375,583 items (worth 42.58 billion won); in 2023, 234 individuals and 122,400 items (worth 27.86 billion won); in 2024, 307 individuals and 176,273 items (worth 13.43 billion won); and last year, 388 individuals and 142,995 items (worth 432.59 billion won).

By item category, accessories accounted for the largest share of seized counterfeit goods at 27.5%, followed by cosmetics at 7.4% and clothing at 6.7%. In terms of genuine value, accessories made up 87.6% of the total.

Last year’s crackdown was particularly effective, as a planned investigation targeting major distribution networks led to the apprehension of a distributor who had circulated a large volume of counterfeit luxury accessories in the market. The counterfeit luxury accessories distributed by this individual totaled about 39,000 items, with a genuine value estimated at 340 billion won. This case represents the largest single incident since the establishment of the trademark police in September 2010.

The Intellectual Property Office, in cooperation with trademark holders, also seized and confiscated 29,000 counterfeit goods valued at 500 million won. The intensified crackdown in response to the surge in trademark infringement and counterfeit goods distribution, fueled by the Korean Wave, has been recognized as yielding tangible results.

In particular, the agency strengthened monitoring and enforcement on social network services (SNS) such as Naver Band, online communities, Instagram, and YouTube, in light of the active trade of counterfeit goods on these platforms. This approach proved effective.

For example, the Intellectual Property Office conducted months-long monitoring, undercover investigations, and stakeouts targeting live broadcasts that sold counterfeit goods on overseas platforms during late-night hours and then deleted related posts to evade enforcement. This planned investigation led to a raid on the broadcasting site. Through these efforts, a total of approximately 17,000 counterfeit items (with a genuine value of 12.7 billion won) were seized, and 44 individuals were referred for criminal prosecution.

Additionally, a significant number of counterfeit goods directly related to public health and safety, such as counterfeit cosmetics and automotive parts, were uncovered during the crackdown. The agency noted that there has been a recent increase in large-scale cases involving counterfeit cosmetics, perfumes, and mask packs, highlighting these as emerging threats to public health and safety.

Shin Sangkon, Director General of the Intellectual Property Protection and Cooperation Bureau at the Intellectual Property Office, expressed concern, stating, "The scale of manufacturing and distribution of counterfeit goods has grown alongside the Korean Wave. More importantly, there has been a notable increase in the mass production and distribution of counterfeit products directly related to public health and safety, such as cosmetics and food, which exacerbates the seriousness of the problem."

He added, "The Intellectual Property Office will continue to conduct intensive crackdowns this year to eradicate the distribution of counterfeit goods. We will apply a zero-tolerance policy to manufacturers and distributors of counterfeit goods who are caught, ensuring strict enforcement of the law."