Lee International

The Korean Customs Service (KCS) reported the seizure of approximately 2 million items, amounting to an estimated 30 billion Korean won (USD 30 million), during the first half of this year.  The confiscated items, which include counterfeit goods like bags and clothing featuring counterfeit brand markings, constitute a violation of intellectual property rights.

The seized items were predominantly distributed through online platforms, with open marketplaces accounting for 39% and social media contributing 30% of the distribution.  Notably, a case detected in open markets involved illicit import of counterfeit bags with forged renowned brand marks from China.  The smuggled goods, valued at 500 million Korean won (USD 500K) were disguised as genuine products with the inclusion of fraudulent "genuine bag import declaration certificates" and were falsely portrayed as imports from the United States.

If businesses falsely attach "genuine bag import declaration certificates" to their products and engage in sales, it becomes challenging to monitor counterfeit goods in the domestic distribution phase.  To address this issue effectively, the most efficient approach is to take action at the border by recording trademark rights with the KCS.  The Customs Law stipulates that the trademarks registrations must be officially recorded with the KCS to ensure proper protection.  Therefore, it would be highly beneficial to officially record the trademark registrations with the KCS for the effective control of counterfeit imports.

When recording registered trademarks with the KCS, guidelines, such as catalogs and photos of genuine products, may be submitted to help identifying counterfeit items.  Additionally, providing information about importers or overseas suppliers potentially engaged in infringement activities is permitted.  This information will be electronically integrated into the assessment process during customs clearance.  Supplying materials for identifying counterfeit items or indicating parties with suspected of involvement in infringing activities facilitates prompt enforcement and efficient protection, as customs officials can swiftly distinguish genuine products.  

When an infringing product is identified at the border through a recorded trademark, customs officials have the authority to detain the infringing product and request an investigation from relevant customs or transfer this case to the prosecutor's office for violating the trademark law.  Furthermore, if there are suspicions of trademark infringement related to trademarks reported to the KCS, the trademark owner or their representative will be notified of the infringing goods.  The trademark owner or their representative can request clearance detention after verifying the authenticity of the goods.

The KCS has announced their plans to conduct thorough inspection of items at the border to prevent the entry of goods that pose threats to public health and safety, particular with increasing trend of direct purchasing from overseas.  To proactively address potential issues at the border before reaching the Korean mark, it is highly recommended to record registered trademarks with the KCS.