Seizures of counterfeit goods rise every year as fakes flood online channels

Authorities have been executing search warrants against counterfeit goods distributors at an increasing rate each year, while the number of counterfeit cases detected through overseas online channels has hovered around 200,000 annually. Small and mid-sized enterprises account for more than 70 percent of all cases detected, fueling calls for stronger intellectual property protections for domestic companies.

Data submitted to the office of Rep. Gu Ja-geun of the People Power Party — a member of the National Assembly's Industry, Trade, Resources, SMEs and Startups Committee — by the Intellectual Property Office show that the number of search and seizure warrants executed by the office's special judicial police rose for three consecutive years: from 104 in 2022 to 138 in 2023, 154 in 2024 and 163 last year. A further 64 warrants were recorded in the first half of this year alone.

The volume of counterfeit goods seized stood at 375,583 items in 2022, 122,400 in 2023, 176,273 in 2024 and 142,995 last year. Last year in particular, the arrest of a dealer who had been importing counterfeit luxury goods from China pushed the retail value of seized fakes to 432.5 billion won ($323 million).

The distribution of counterfeit goods through overseas online channels has shown little sign of abating. After falling from 252,544 cases in 2022 to 161,110 in 2023, detections climbed back to 191,971 in 2024 and rose further to 210,034 last year.

By country, China recorded the highest number of detections last year at 29,673 cases, followed by Vietnam at 21,296, the Philippines at 19,759 and Singapore at 19,134.

By product category, character merchandise and lifestyle goods accounted for nearly half of all cases at 99,303, while clothing came in at 39,229 and beauty products at 36,116. Counterfeiting has spread well beyond luxury goods into everyday consumer items — apparel, cosmetics and household products.

Cases involving small and mid-sized enterprises were particularly prominent. Last year, small and medium-sized enterprises accounted for 83,872 detections and mid-sized firms for 79,557, bringing the combined total to 163,429 — equivalent to 77.8 percent of all cases. Large companies were linked to 46,605 detections.

The dominance of smaller firms in counterfeit cases has prompted calls for targeted support, given that such companies typically have fewer resources to fight back. Detection figures do not necessarily reflect actual financial losses, however, and the real damage to individual companies warrants separate examination.

The government has also moved to counter the spread of fake K-brand products overseas. According to a 2024 OECD report, the global distribution of counterfeit K-brand goods is estimated at around 11 trillion won.

To protect the trademark rights of domestic companies, the Intellectual Property Office operates a government certification program for K-brands under which the government becomes the rights holder of nationally certified trademarks and works alongside companies to combat overseas counterfeits. Firms using the nationally certified trademark are granted access to an authentication monitoring system that tracks both genuine and fake products. Small and mid-sized enterprises can receive up to 200 million won per company toward the cost of introducing product-authentication technology.