Two South Koreans were arrested for selling counterfeit luxury items to foreigners at a hidden store in Myeong-dong, Seoul.
The Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood and Safety announced on Feb. 20 that the two suspects were booked for selling fake luxury goods such as bags and watches, and 1,200 items were seized.
The confiscated goods, valued at an estimated 3.82 billion won ($2.66 million) based on retail prices, included 125 counterfeit watches, 461 wallets, 434 bags, 47 pairs of earrings, 31 clothing items, 49 hats and scarves, and 53 pairs of shoes.
The actual business owner, identified as A, had hired another suspect, B, as a “dummy owner” to avoid criminal penalties and sold counterfeit goods at various locations in Myeong-dong for over six years.
Despite being investigated five times for trademark violations, the business continued because the profits from sales far outweighed the fines.
According to the investigation, A earned about 200 million won in sales and 150 million won in net profit over the past year, while paying only 12 million won in fines over the six-year period.
Suspect A set up both a legitimate store and a hidden store to avoid detection. Only foreigners who had seen advertisements on social media platforms like Instagram were directed to the secret store, which was hidden behind a wall and accessed via a concealed staircase leading to a 30-pyeong space. The counterfeit luxury items, including high-end watches, bags, wallets, and shoes, were displayed like in a shopping mall.
Under South Korean trademark law, distributing, selling, or storing counterfeit goods can lead to up to seven years in prison or fines of up to 100 million won.
Last year, the Special Police Bureau arrested 125 individuals for trademark violations and confiscated over 16,000 counterfeit items worth an estimated 21.5 billion won.
The Special Police Bureau for Citizens' Livelihood & Safety said it will thoroughly track and seize criminal profits obtained from selling counterfeit goods, not just from possession or storage.
