The head of Blue Elephant was arrested in connection with a criminal complaint filed by IICOMBINED, which operates Gentle Monster.
According to the legal community and News1 on the 14th, the Daejeon District Court on the 13th issued a warrant to detain a person surnamed Lee, the head of Blue Elephant, who is suspected of violating the Unfair Competition Prevention Act.
Earlier, IICOMBINED filed a complaint against Blue Elephant in Dec. 2024. Then in Oct. last year, it filed a civil lawsuit seeking an injunction and damages under the Unfair Competition Prevention Act.
During the prosecution's investigation, requests for an arrest warrant were made twice. The prosecution sought the first detention warrant in Nov. last year, but the court rejected it at the time, saying the need for detention was not recognized. However, after supplementary investigation, the prosecution reapplied for a warrant on the 9th of this month. This time, the court accepted the prosecution's explanation and issued the warrant.
Founded in 2019, Blue Elephant has rapidly grown in the market as a "cost-effective version" of Gentle Monster. But throughout its growth, there has been a steady stream of criticism that not only its product designs but also its distinctive in-store exhibition concept closely resemble Gentle Monster.
Blue Elephant does not entirely deny that it referred to other companies' products during the product development stage.
An attorney for Blue Elephant said, "Given the structural particularities of eyeglasses as a product and industrywide practices, a legal interpretation of the scope of protection under the Unfair Competition Prevention Act is the key to this case."