Gang distributed 35.5 billion won worth of counterfeit Louis Vuitton and Chanel goods and laundered 5.1 billion won by enlisting family members

[Financial News] A business-like criminal organization that brought counterfeit goods from famous luxury brands such as Louis Vuitton and Chanel from China, distributed them in major commercial districts including Dongdaemun and Myeong-dong, and concealed about 5.1 billion won in sales proceeds has been caught by police. The investigation found that the group enlisted family members and acquaintances, dividing up roles from importing and selling the goods to laundering the proceeds.
The Seoul Seongbuk Police Station said on the 29th that it had referred a woman in her 40s, identified as A, the group’s domestic sales leader, to prosecutors while in custody on suspicion of violating the Act on Regulation and Punishment of Criminal Proceeds Concealment, the Trademark Act and the Electronic Financial Transactions Act. It also referred 10 members involved in sales, logistics and money laundering to prosecutors without detention on suspicion of violating the Trademark Act, the Electronic Financial Transactions Act and other laws. Police also seized 6,093 counterfeit items worth approximately 35.5 billion won.
According to police, the suspects are accused of importing into South Korea and selling counterfeit goods from famous luxury brands made in China between February 2025 and last February.
Distribution was not limited to online channels. The group sold directly to individual consumers through online shopping malls and video platforms while also supplying goods to retailers in major commercial districts such as Dongdaemun and Myeong-dong. Investigators found that the wholesale price was 2–3% of the price of authentic goods.
The organization was also structured with roles divided among its members. Once suppliers in China brought in the goods, the group’s domestic sales leader and staff in charge of sales and logistics handled distribution, while separate members managed the sales proceeds and laundered the money. Investigators determined that sales leader A assigned her son and acquaintances duties including sales, selling the goods and money laundering.
Investigators found that B, a supplier based in China, used a Personal Customs Clearance Code to bring the counterfeit goods into South Korea and then delivered them through women’s safe parcel lockers and other means. Depending on their assigned duties, members received either a commission calculated as a set percentage of the amount supplied or a fixed salary.
To evade investigation, the group managed the sales proceeds by depositing them into accounts under other people’s names and then converting them to cash. Police analyzed transactions in around 50 bank accounts and identified approximately 5.1 billion won in criminal proceeds. Analysis of seized mobile phones and call records also helped police identify additional members involved in distribution and management, as well as retailers.
Police began their investigation after receiving a 112 report on the 24th of last February about a warehouse storing counterfeit goods. They arrested two employees at the scene on suspicion of violating the Trademark Act, then located another warehouse and conducted a search and seizure. They subsequently apprehended those involved one by one based on financial transaction records and mobile phone data they had obtained.
Police are tracking down the local supply chief who fled to China. They took steps to preserve for confiscation, before indictment, criminal proceeds worth about 35 million won obtained by the business operators and others.
A police official said, “The distribution of counterfeit goods harms not only consumers but also retailers selling goods for legitimate trademark holders. We will continue investigating related crimes to eradicate trademark infringement and protect intellectual property rights.”
[email protected] Seo Ji-yoon Reporter