"Made in Dongdaemun" Passed Off as Luxury Goods...Ring That Sold 3.5 Billion Won in Counterfeits Caught

[Financial News] A ring that smuggled fake luxury watches and sneakers from overseas for domestic sale, and attached counterfeit luxury labels to clothing bought at Dongdaemun clothing markets, has been handed over to prosecutors.
Seoul Gwangjin Police Station announced on the 13th that it had arrested two distributors on charges of violating the Trademark Act and referred them to the prosecution, and had also booked without detention eight others—including a delivery driver, a watch assembler, a seller of fake luxury labels, and the head of an embroidery company—bringing the total number of suspects sent to prosecutors to ten.
According to the police, the group is suspected of using offices in Seoul and Gyeonggi Province as bases to sell fake luxury watches, clothing, and sneakers for about five years up to recently, earning illicit profits totaling around 3.5 billion won.
In particular, the two detained distributors, identified as A and B, allegedly worked with overseas brokers to place bulk orders for counterfeit watch bodies, brought them into Korea via air express, and then had them turned into finished products through a watch assembly shop. They are believed to have continued their crimes by distributing the completed watches through operators of overseas online shopping malls and other channels, building an organized sales network.
In November 2024 and again this January, police raided two offices run by the group and seized 412 pieces of counterfeit luxury clothing, 258 fake luxury watches, and 50 pairs of luxury-brand sneakers. The seized items are estimated to be worth about 7.7 billion won at genuine retail prices.
During the investigation, eight additional suspects—including the delivery driver, watch assembler, seller of fake luxury labels, and the head of the embroidery company who took part in the scheme—were also booked without detention on charges of violating the Trademark Act and referred to prosecutors.
A police official stated, "Trademark infringement offenses such as manufacturing counterfeit luxury watches are serious crimes that can be punished by up to seven years in prison or a fine of up to 100 million won," and emphasized, "We will respond strictly to activities that disrupt the domestic market by working with overseas brokers."

yesji@fnnews.com Kim Ye-ji Reporter