The government will introduce a "K-brand government certification system" to respond to the spread of counterfeit K-brand goods overseas. Under the plan, the government itself will become the right holder of the certification mark and urge local authorities abroad to investigate and crack down, expanding the response system, which has so far been centered on individual corporations, to a whole-of-government level.
The Ministry of Intellectual Property said on the 31st that it held a briefing and, together with related ministries and agencies including the Ministry of Agriculture, Food and Rural Affairs, the Ministry of SMEs and Startups, the Ministery of Food and Drug Safety, and the Korea Customs Service, had prepared a plan to introduce the K-brand government certification system, and reported the relevant details to a Cabinet meeting that morning. The government will develop a certification mark that reflects Korean elements, register it in 70 countries that are major export destinations and pose a high risk of counterfeit distribution, and have corporations autonomously decide whether to use the mark and which products it will apply to.
Behind the move to introduce the system is the economic damage caused by the spread of counterfeit goods overseas. According to a 2024 report by the Organization for Economic Cooperation and Development (OECD) cited at the briefing, the volume of counterfeit K-brand goods distributed overseas is estimated at $9.7 billion (about 11 trillion won). The government estimates that this has resulted in the loss of 14,000 jobs and 1.8 trillion won in tax revenue.
Also, until now, even if counterfeit goods were distributed overseas, it was difficult to identify production and distribution channels because the victim corporations had to take legal action individually, and local authorities were often passive in investigations or crackdowns. Even when filing damages lawsuits, there have been many cases where the compensation amount did not even cover attorney fees, revealing limits to corporations responding alone.
The core of the new system is that the government holds a certification mark in the form of a "certification label." When the government certification mark is attached to products along with corporations' existing trademarks, authenticity can be verified through anti-counterfeiting elements and digital authentication technology. Overseas consumers can scan products with smartphone cameras without installing a separate app to verify authenticity, and the government can use this data to identify the regions and scale of counterfeit distribution in near real time. Once infringement is confirmed, related ministries and agencies, including the Ministry of Foreign Affairs, the Ministry of SMEs and Startups (MSS), the Ministry of Agriculture, Food and Rural Affairs, the Ministery of Food and Drug Safety, and the Korea Customs Service, will cooperate to directly request local authorities to investigate, crack down, or suspend customs clearance.
Korea Minting, Security Printing & ID Card Operating Corporation (KOMSCO) said at the briefing that the certification mark will incorporate both visual identification elements and digital elements. If repeated authentication attempts occur in a particular area, the database will flag potential counterfeiting and share this with relevant agencies for a coordinated response. The government expects that the accumulated counterfeit data could also be used in corporations' civil and criminal lawsuits.
Kim Yong-seon, Minister of Intellectual Property, said, "The initial scope will likely focus on K-consumer goods such as food, cosmetics, and fashion," adding, "We are consulting with corporations centered on major export items, and individual corporations will decide which products will carry the certification mark." However, Kim acknowledged that it would be difficult to regulate all so-called "Hallyu piggyback products" that are not formal brands of Korean corporations. For products without a domestic trademark holder, the system will be difficult to apply directly.
The government believes that because the K-brand certification mark could effectively be seen as a government guarantee, a minimum quality standard is necessary. Accordingly, products that have passed existing certification systems operated by each ministry, such as HACCP and KC, will be given priority to attach the certification mark, and items without separate certifications, such as fashion and startup products, are being considered for inclusion based on recommendations from relevant ministries.
Meanwhile, the related budget will seek to allocate 9.5 billion won in this year's supplementary budget. The government said the budget includes system construction costs, promotion costs, and support expenses for small and medium exporters, and it will consider whether to continue promoting the program based on progress. It also plans to expand the budget for expert assistance and legal expense support to reduce the legal burden on small and medium exporters.
Minister Kim said, "With the introduction of the K-brand certification mark, the fight against overseas counterfeit goods that corporations have shouldered alone will now shift to a system in which the government also responds," adding, "Protecting the value of K-brands is tantamount to protecting the competitiveness of the Republic of Korea, so we will track K-brand counterfeits to the end and eradicate them without fail."