A man in his 50s has been caught storing thousands of counterfeit luxury goods, with an estimated retail value of more than 8.8 billion won, in an underground warehouse in Jangan-dong, Dongdaemun-gu, Seoul, and attempting to sell them through YouTube live broadcasts.
The Seoul Metropolitan Government's Public Safety Investigation Bureau said on the 21st that it had uncovered a large quantity of counterfeit luxury goods in the underground warehouse and would book the man, identified only as A, on charges of violating the Trademark Act before referring him to prosecutors.
A total of 7,369 counterfeit items were seized at the site, including 1,004 handbags, 3,187 wallets, 752 pairs of sunglasses and 669 bottles of perfume bearing counterfeit luxury brand trademarks. The estimated value of the genuine equivalents was 8.89 billion won, the largest amount in the history of counterfeit investigations by the city's special judicial police.
During the investigation, A partly denied the allegations, claiming that some of the products were authentic, and delayed questioning citing personal reasons. The bureau then secured evidence proving the goods were counterfeit through detailed reappraisals conducted with overseas trademark holders.
The investigation found that A had amassed thousands of counterfeit items in a large warehouse and used separate "sellers" to market them nationwide through live broadcasts on platforms such as YouTube. Moving beyond small-scale offline sales at street stalls or stores, he attempted large-scale distribution by drawing on a high volume of counterfeit goods and tapping online sales networks.
A had begun selling goods at street stalls in the Dongdaemun area when he was young and had been punished several times for trademark violations, yet he continued to expand both the volume of counterfeit goods he handled and his sales methods, the investigation showed.
The city said counterfeit distribution has recently grown more organized and wider in scope, combining large warehouses with online live broadcasts. After referring A to prosecutors, the bureau plans to continue investigating the overall distribution structure, including how the counterfeits were obtained and whether there were additional suppliers, by analyzing digital records such as mobile phones and transaction records.
Under the Trademark Act, distributing, selling or storing counterfeit goods can carry a prison term of up to seven years or a fine of up to 100 million won. Those who report criminal activity with decisive evidence and contribute to the public interest can receive a reward of up to 200 million won under related ordinances.
"Counterfeit crimes are becoming increasingly organized and wider in scope, moving beyond simple sales to the use of large warehouses and online distribution networks," said Lee Chang-seok, head of the Public Safety Investigation Bureau. "Seoul will concentrate more investigative resources in line with changing criminal methods and closely track the entire distribution process, from supply and storage to sales, to do its utmost to eradicate counterfeit crime."
