Counterfeit luxury bags and wallets that a ring allegedly brought in from China lie among goods seized by the Seongbuk Police Station in central Seoul.SEONGBUK POLICE STATION
Police have sent 11 people to prosecutors over a ring that allegedly brought fake Louis Vuitton and Chanel bags and wallets from China and sold them across Korea for about 5.1 billion won ($3.8 million).
Prosecutors sent the woman accused of running the ring’s sales to detention on charges including violating the Trademark Act, concealing criminal proceeds and violating the Electronic Financial Transactions Act, the Seongbuk Police Station in central Seoul said Thursday.
Police referred 10 members who handled sales, logistics and money laundering without detention. They are the woman’s family members and acquaintances, police said.
The ring allegedly sold China-made fakes of foreign luxury brands such as Louis Vuitton and Chanel — mostly bags and wallets — from February last year to February this year.
Police seized 6,093 counterfeit items from the group’s warehouse. At the genuine products’ prices, the haul would be worth about 35.5 billion won.
A Chinese supplier shipped the fakes to Korea, and the woman oversaw sales. The supplier put the goods through customs using personal customs clearance codes, the numbers the Korea Customs Service issues to individuals who import goods for personal use. Once in Korea, the goods changed hands through channels including women’s safety parcel lockers — public lockers set up so women living alone can receive deliveries without giving out their home addresses.
The woman assigned her son and acquaintances business, sales and money-laundering duties. Members sold the goods directly to individual buyers through online shopping malls and video platforms. They also supplied retailers in major shopping districts such as Dongdaemun and Myeongdong, charging 2 to 3 percent of the genuine products’ prices.
Counterfeit luxury bags and wallets that a ring allegedly brought in from China lie among goods seized by the Seongbuk Police Station in central Seoul.SEONGBUK POLICE STATION
The members split the profits by role. Some took a fixed percentage of the supply value as commission, while others drew a fixed salary.
To stay ahead of investigators, the ring had buyers pay into accounts held in other people’s names and then withdrew the money in cash. Police traced transactions across about 50 bank accounts to identify 5.1 billion won in criminal proceeds.
The investigation began on Feb. 24, when police received an emergency call reporting a warehouse in Seongbuk District that stored counterfeit goods. Officers arrested two employees at the scene for violating the Trademark Act.
Counterfeit luxury bags and wallets that a ring allegedly brought in from China lie among goods seized by the Seongbuk Police Station in central Seoul.SEONGBUK POLICE STATION
Police then raided other warehouses and analyzed seized mobile phones and call records. Officers tracked down the ring’s distribution and management staff, then its retailers.
Police are now tracking the China-based supplier, who has fled overseas. They have also secured a pre-indictment order to preserve about 35 million won of the proceeds for confiscation.
“The distribution of counterfeit goods harms not only consumers but also the legitimate trademark holders,” a Seongbuk police official said. “We will continue our investigation to root out trademark infringement and protect intellectual property rights.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
