Huh Sung-moo, a Democratic Party of Korea lawmaker for Seongsan District in Changwon, South Gyeongsang, urged the government to expand the budget to introduce a certification system to tackle the spread of counterfeit K-brand products overseas.
On the 9th at the National Assembly's Special Committee on Budget & Accounts, Huh said, "The distribution scale of counterfeit K-brand products amounts to about 11 trillion won, and the damage is severe," and stated accordingly.
Citing the 2024 "Illicit Trade and the Korean Economy Report" by the Organisation for Economic Co-operation and Development (OECD), Huh explained, "Due to the spread of counterfeit goods, corporations' sales decreased by about 7 trillion won, 14,000 jobs were lost, and government tax revenue fell by about 1.8 trillion won."
In particular, Huh pointed out insufficient protection of rights for K-food corporations. Major corporations such as Samyang Foods, CJ CheilJedang, and Daesang have won lawsuits related to counterfeit products in China, but cases continue in which the actual compensation does not even reach 1 billion won.
Huh said, "The K-food and K-beauty industries are top export items and core sectors that drive national competitiveness," adding, "If the counterfeit product problem is left unchecked, the damage will go beyond corporations and could undermine trust in the national brand."
He went on, "There are clear limits to post-facto responses," and said, "The government should use a certification system to clarify whether products are genuine and block counterfeits at the distribution stage." He added, "It is necessary to actively expand the budget for introducing a certification system to protect K-brands."