Counterfeit luxury goods rampant on online shopping malls (Image courtesy of Yonhap News TV)
BUSAN, Dec. 15 (Korea Bizwire) — South Korea’s Coast Guard has arrested a smuggling ring accused of importing thousands of counterfeit luxury goods from China and selling them online, prompting several global fashion houses to issue formal letters of appreciation — an unusually public response from brands that rarely acknowledge enforcement actions.
The South Regional Coast Guard said Friday it had detained four suspects, including the alleged ringleader, a man in his 40s who has been formally arrested on charges of violating customs and trademark laws. Investigators say the group smuggled 7,565 fake luxury items into the country over 219 shipments between 2023 and May 2024.
According to authorities, the operation relied on increasingly sophisticated tactics: counterfeit bags, shoes, clothing and perfumes were flown in by express courier and stored in a Daegu warehouse.
The smugglers allegedly used multiple borrowed identities to disguise the shipments as personal purchases of apparel and footwear. Once orders were placed through online marketplaces, wholesalers shipped the fake goods directly to consumers.
Police seized 4,100 counterfeit items during the investigation — goods with an estimated retail value of 10.8 billion won (US$8.2 million). The fakes copied 33 global luxury brands, including Gucci, Louis Vuitton, Chanel, Hermès and Dior. Some counterfeit perfumes were found to contain harmful substances, officials said. All seized items will be destroyed.
South Korea’s online luxury goods market has experienced a sharp decline. (Image courtesy of Yonhap)
The large-scale bust drew swift acknowledgment from the brands. Gucci sent a letter of appreciation on Dec. 4, followed by Louis Vuitton, whose Asia-Pacific head of intellectual property, Mayank Bedi, personally delivered a plaque to the Coast Guard on Dec. 12.
“With counterfeit products increasingly damaging the value of iconic trademarks, we are grateful for the Coast Guard’s strong enforcement efforts,” Bedi said.
Nam Sung-min, head of investigations at the South Regional Coast Guard, urged continued cooperation from luxury houses as smuggling techniques evolve. “Effective crackdowns require public-private collaboration,” he said. “We hope brands will continue to actively share information as part of broader efforts to protect intellectual property.”
Lina Jang (linajang@koreabizwire.com)
