“This is an illegal enforcement area, so you need to sell quickly and get out. Take one (bag). I will give you a Chanel for 150,000 won.”
On the afternoon of the 20th at around 1:20 p.m., a "lightning market" opened in the underground shopping area corridor of the Express Bus Terminal in the Jamwon-dong area of Seocho-gu, Seoul. Fifteen bags with logos of Chanel, Hermes, Bottega Veneta, and Burberry were spread out on a mat laid on the floor. A male seller, appearing to be in his early 30s, urged customers, saying, “If you take your time, they will all be sold. I will give you the ones in your hands for 150,000 won, so take them quickly.”
◇15 counterfeit bags sold out in 9 minutes and 43 seconds; another 15 bags sold out 30 minutes later
Eleven customers surrounding the mat held up "counterfeit luxury" bags and examined them. When one customer asked to see Chanel's classic mini crossbody bag, the seller introduced the product by saying, “It has caviar leather and the interior red details are identical. The chain is also platinum.” He encouraged, “You can't find luxury like this anywhere else. Don’t buy a cheap bag for 50,000 won; spend 150,000 won and get a bag.” The genuine price of this bag is around 5 million won. Behind the seller was a banner that read, “Prohibition of sales.”
A housewife said to a nearby reporter, “Young people don’t know how to assess luxury items. All of these are grade A. If I go to Itaewon (to a counterfeit store), this one costs at least 400,000 won, so it’s better to buy quickly here,” while fiddling with a counterfeit Bottega Veneta cassette bag and adding, “Mister, I just wired you 150,000 won; let me see one more.”
Nine minutes and 43 seconds after the seller spread out the mat, all 15 bags were sold out. It took 38 seconds to sell each one. The seller seemed to leave the spot for a moment, but about 15 minutes later, he spread the mat again and began selling another 15 counterfeit bags that he had brought from somewhere. About 10 people gathered again, and this time, everything was sold in just 17 minutes and 21 seconds. Since each bag cost around 150,000 won, the seller earned 4.5 million won in 27 minutes and 4 seconds.
To avoid enforcement, sellers also had someone watching. A man was glancing around from about 5 meters away from the mat with counterfeit products. When a passerby took a photo, the seller approached and said, “You can’t take pictures here. Please delete it.”
◇Nearby merchants express dissatisfaction: “Even if we report to the police, nothing is done.”
Merchants around the lightning market, who pay rent to operate legally, said illegal sales have not been eradicated even after reporting to the police. One merchant stated, “We pay 3 million won in rent every month to operate, but they do it for free.” An underground shopping area official remarked, “We’ve tried reporting to the police, but it was useless. I thought the police would seize the counterfeit luxury items when they came, but they didn’t take any special measures. We’ve given up now.”
A representative from the Seoul Transportation Corporation noted, “We are deploying security personnel to ensure enforcement can take place,” but added, “(The lightning market sellers) are organized and use walkie-talkies, making eradication difficult.”
◇Over 3,500 counterfeit items seized in Myeongdong over ten days; joint enforcement action in Dongdaemun
In contrast to the underground shopping area of the Express Bus Terminal, active enforcement against counterfeit luxury items is taking place in areas like Myeongdong and Dongdaemun in downtown Seoul. The Korean Intellectual Property Office (KIPO) conducted concentrated enforcement in the Myeongdong area from the 13th to the 24th of last month, seizing 3,544 counterfeit luxury items from six shops. If these counterfeits were genuine, the total price would reach 20 billion won. Merchants lured foreign tourists through touts and sold counterfeit luxury items stored in secret areas within the shops.
Dongdaemun Saebit Market refers to a market with over 100 yellow tents that unfolds in front of Dongdaemun History & Culture Park Station from 8 p.m. to 3 a.m. the following day. It was also famous as a place where foreign tourists could purchase counterfeit luxury items. The Korean Intellectual Property Office, along with the Seoul Metropolitan Government, Seoul Jung-gu, and Seoul Central Police Station, conducted joint enforcement in Saebit Market three times in March, May, and July of last year. They seized 1,173 counterfeit luxury items such as Louis Vuitton, Chanel, and Gucci that were being sold under the yellow tents and arrested 11 merchants.
As enforcement has been repeated, the number of counterfeit luxury items detected has decreased from 854 to 217 to 102, and the number of merchants arrested has also dropped from 6 to 4 to 1. This suggests that joint enforcement by the trademark police, local governments, and the police has been effective in curbing the distribution of counterfeit luxury items. The Korean Intellectual Property Office plans to extend its collaborative enforcement model to famous markets across the country, such as Daegu Seomun Market and Busan Gukje Market.
Producing or selling counterfeit luxury items is a violation of trademark law and can result in up to seven years in prison or a fine of up to 100 million won. However, buyers who know they are purchasing counterfeit items are not penalized.
◇Some openly express satisfaction, saying, “This is a counterfeit, but I bought it cheap.”
Despite the strengthened enforcement against the sale of counterfeit luxury items, concerns have been raised that it remains difficult to eradicate completely. Counterfeit luxury items are also being distributed in a form where regular consumers can make direct purchases. The Korean Intellectual Property Office found that when it purchased 16 pairs of slippers and sandals of a luxury brand from a popular Chinese online shopping mall last November, all were identified as counterfeits. There is also a large volume of counterfeits imported from abroad. When the Customs Service conducted intensive enforcement on imports last November, 142,930 counterfeit items were detected.
Kwak Geum-joo, an honorary professor of psychology at Seoul National University, said, “There is a strong desire to possess luxury goods, but when there is no economic leeway, people seek out counterfeits.” However, he noted that the reasons for purchasing luxury items have changed compared to the past. Professor Kwak stated, “The MZ generation does not want to feel the discomfort of making a fake look genuine. They are more likely to openly express satisfaction by saying, ‘This is a counterfeit, but it’s inexpensive. I bought it cheap,’ thus feeling a sense of better consumption.”