A group that rented an entire floor of a large shopping mall in Seoul's Dongdaemun district and sold counterfeit goods on a massive scale for 10 years has been caught. The estimated retail value of the seized counterfeit goods based on authentic product prices reached approximately 7.2 billion won ($5.2 million), the largest ever in Seoul's counterfeit investigation history.
The Seoul Metropolitan Government's Public Welfare Investigation Bureau announced Thursday that it had apprehended two members of a group selling counterfeit goods in Dongdaemun after six months of tracking and surveillance, referring them to prosecutors on Nov. 16. A total of 1,649 counterfeit items were seized at the scene, including bags, wallets, and watches bearing luxury brand trademarks. Their estimated value based on authentic product prices amounts to approximately 7.2 billion won.
The arrested group operated their store under tight security. Foreign tourists were their primary targets, and they generated revenue through group purchases arranged with tour guides. They placed luxury magazines in the store to confirm customers' purchase intentions and used them as codes and signals for mutual identification. They monitored investigative authorities' movements in real time and thoroughly blocked sales to Koreans, while installing more than 10 closed-circuit television (CCTV) cameras inside and outside the store to evade surveillance by investigators. They also maintained separate secret warehouses in various locations, demonstrating meticulous preparation for crackdowns.
The Seoul Metropolitan Government mobilized its investigative capabilities, including executing multiple search and seizure warrants and deploying digital forensics specialists, to apprehend the suspects. It also conducted joint investigations by having trademark holders of famous brands participate at the scene, and through digital records secured from mobile phones, identified not only the store's warehouses but also residences where counterfeit goods were hidden, securing dispersed and concealed counterfeit items and evidence.
Distributing, selling, or storing counterfeit goods is punishable by up to seven years in prison or a fine of up to 100 million won ($72,500) under the Trademark Act. The Seoul Metropolitan Government urged citizens to actively report such crimes to eradicate counterfeit sales offenses, which have recently become more sophisticated and covert. Those who report criminal activities with decisive evidence can receive rewards of up to 200 million won.
The Seoul Metropolitan Government plans to respond strictly to trademark law violations, with compulsory investigation as a principle, following this case. Byun Kyung-ok, director of the Seoul Metropolitan Government's Public Welfare Investigation Bureau, said, "We will investigate counterfeit goods distribution more forcefully."
