South Korea: Dismantling a high-end cosmetics counterfeiting ring, total value over 151 billion VND

A cosmetics production line that counterfeited high-end brands was busted, with more than 87,000 products, with a total estimated value of up to 7.9 billion won (more than 151 billion VND).

The special police force on trademarks, under the Korean Intellectual Property Office (KIPO), has just dismantled a high-end cosmetics counterfeiting ring - Photo: YONHAP

According to Yonhap News Agency, on June 19, the trademark police - under the Korean Intellectual Property Office (KIPO) - just dismantled a counterfeiting and distribution ring of cosmetics that imitated famous brands.

More than 87,000 products were distributed from March 2023 to April 2024, counterfeiting famous domestic and global brands such as SK-II, Kiehl's and Estée Lauder.

The total estimated actual value is up to 7.9 billion won (more than 151 billion VND), of which this group earned illegal profits of up to 2.1 billion won (more than 40 billion VND).

According to the police, the group of four suspects, including a contact named A (42 years old), were accused of violating trademark laws and their cases have been transferred to the country's prosecutor's office.

Investigation showed that suspect A was responsible for overseas sales and import management, Mr. B (40 years old) handled import-related procedures, while Mr. C (43 years old) and Mr. D (38 years old) were involved in domestic distribution, showing an organized division of roles in this ring.

Notably, counterfeit products are so sophisticatedly crafted that it is difficult to distinguish between real and fake, even for industry experts.

This group also disguised counterfeit products as parallel imports, in order to deceive many professional cosmetics distributors, as well as partners of home shopping channels.

During the investigation, police seized more than 6,000 products from a distributor preparing to export them overseas. They then discovered an additional 40,000 counterfeit products stored in a warehouse in Gyeonggi Province, ready to be put into a home shopping system.

About 41,000 remaining products were sold on the market at a price only one-third of the genuine product.

Fortunately, the counterfeit products were free of toxic substances, but the active ingredients and nutrients were substandard. Experts said these products were like “plain water.”

Specifically, according to the analysis of the brands, the fake SK-II whitening essence lacks the main whitening ingredient such as niacinamide, and the actual volume of the fake Estée Lauder serum is lower than the amount stated on the label (50ml).

Mr. Shin Sang Gon, Director General of the Korean Intellectual Property Office (KIPO), advised consumers to be extremely cautious when purchasing products with unusually low prices and should prioritize purchasing through official channels.

He said KIPO will step up investigations to eliminate counterfeit goods chains that threaten the rights and health safety of consumers.

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Source: https://tuoitre.vn/han-quoc-triet-pha-duong-day-lam-gia-my-pham-cao-cap-tong-gia-tri-hon-151-ti-dong-20250624145847031.htm