The government is strengthening sanctions against the circulation of counterfeit goods in the country. This is due to concerns that products directly related to public health and safety, as well as those that could hinder innovation in corporations and damage the image of domestic brands in export markets. The Korean Intellectual Property Office plans to actively respond to counterfeit goods using advanced technologies, including artificial intelligence (AI).
The Korean Intellectual Property Office announced the 'Comprehensive Measures to Prevent Counterfeit Product Distribution' at the 2nd National Policy Agenda Meeting on the 30th. The core of this measure is to transition from a focus on protecting existing famous brands and post-factum crackdowns to protecting public health and the overall K-brand, emphasizing AI-based prevention. The policy design will also shift from a government-led approach to a structure where corporations, trademark holders, consumers, and other private entities participate together.
First, the number of brands subject to AI monitoring will increase from the existing 160 to 500 by 2027. AI will analyze images and text together to detect altered trademarks or image compositions. In cooperation with the tariff office, counterfeit goods from overseas direct purchases will be blocked at the customs stage, and collaboration with the Korea Communications Standards Commission will link to blocking access to sales sites and deleting overseas posts. The plan is to strengthen responses in crucial industries, including cosmetics, which experience frequent damage, in conjunction with corporations.
For unofficial distribution channels such as social media (SNS) and live broadcasts, evidence collection techniques will be advanced and linked to planned investigations. Accounts of habitual sellers will be blocked, and seller information will also be shared. As of the 22nd, punitive damages for trademark infringement have also been expanded up to five times. A dedicated investigation team will be established for large counterfeit sales sites, including Dongdaemun street vendors, and penalties will be strengthened to allow local governments to revoke street vendor permits.
Regarding online platforms, the trademark law will be revised to mandate the blocking of sales when counterfeit goods are reported, and to impose obligations on overseas platforms to designate domestic representatives. If platforms fail to comply with reporting and blocking measures, they may face fines and media announcements. The Korean Intellectual Property Office plans to inspect compliance through written surveys and will make the results public.
Crackdowns on counterfeit K-brands distributed overseas will also be intensified. According to the Organization for Economic Cooperation and Development (OECD), the scale of counterfeit K-food and K-cosmetics distribution amounted to approximately 11 trillion won as of 2021. In response, the target for AI monitoring will increase from 190,000 cases annually to 300,000 by 2027. Plans include promoting methods for identifying counterfeit goods in the food sector overseas in cooperation with the Ministry of Agriculture, Food and Rural Affairs, and the Ministry of Oceans and Fisheries, and sharing information with local enforcement agencies.
This measure involves participation from the Korean Intellectual Property Office, the Ministry of Trade, Industry and Energy, the Ministry of Small and Medium-sized Enterprises and Startups, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and Fisheries, the Ministry of Foreign Affairs, and others. The Korean Intellectual Property Office will provide a list of brands harmed by counterfeiting and country-specific response manuals, while each department will handle export support, intellectual property rights acquisition, and collaboration with overseas diplomatic missions.
Korean Intellectual Property Office Commissioner Kim Wan-ki said, "To effectively respond to increasingly intelligent counterfeit product manufacturing and distribution, a more scientific and detailed approach is necessary," and noted, "We will actively utilize advanced technologies and lead the way in building a sound market order by encouraging responsible participation from market entities."