11 Arrested for Illegal Distribution of KRW 35.5 Billion Worth of Counterfeit Luxury Goods

A ring of suspects has been referred to prosecutors for smuggling and illegally distributing 35.5 billion won worth of counterfeit luxury goods, including brands like Louis Vuitton and Chanel, into South Korea.

The Seoul Seongbuk Police Station announced today (October 29) that it has transferred a woman in her 40s, identified as A, who served as the chief distributor, into custody on charges of violating the Trademark Act, concealing criminal proceeds, and violating the Electronic Financial Transactions Act.

Ten other syndicate members involved in sales, distribution, and money laundering were also referred to prosecutors without detention.

These members include A's family members and acquaintances.

They are accused of bringing counterfeit foreign luxury items, such as bags and wallets manufactured in China, into the country, selling them, and hiding the profits from February of last year to February of this year.

The counterfeit items seized by police totaled 6,093 items across 27 categories, with an estimated market value of approximately 35.5 billion won.

Investigations revealed that the criminal proceeds earned by the group amounted to about 5.1 billion won.

After a local supplier in China brought the counterfeit goods into South Korea using personal customs clearance codes, the suspects received the items via secure women's delivery lockers and systematically divided roles such as marketing, sales, and money laundering.


The goods were sold directly through online shopping malls and video platforms, and were also supplied to retail stores in major commercial districts like Dongdaemun and Myeong-dong at about 2 to 3 percent of the genuine retail price.

It was found that they laundered their criminal proceeds by receiving payments into accounts under other people's names and converting them into cash to evade police tracking.

The case began in earnest in February when police responded to a 112 emergency call reporting that a warehouse storing famous counterfeit goods existed, leading to the flagrante delicto arrest of two employees at the scene for violating the Trademark Act.

Police are currently tracking down the chief supplier who has fled overseas.

An official from the Seongbuk Police Station stated, "Because the distribution of counterfeit goods harms not only consumers but also legitimate trademark holders and sellers, we will continue our investigations into related crimes to eradicate trademark infringement and protect intellectual property rights."

(Photo provided by Seongbuk Police Station, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.