On Wednesday, July 30, the Korean Intellectual Property Office (KIPO), under Commissioner Kim Wan-ki, announced the "Comprehensive Measures to Combat Counterfeit Goods Distribution" during the 2nd Ministerial Meeting on Current State Affairs, chaired by Prime Minister Kim Min-seok at the Sejong Government Complex.
The new strategy aims to strengthen sanctions against counterfeit goods, which threaten public health and safety, undermine corporate growth and innovation, and damage the global reputation of K-brands. A key component involves actively deploying advanced technologies like artificial intelligence (AI) to block increasingly sophisticated and covert distribution channels, including online platforms, social media, and live commerce broadcasts. KIPO estimates that AI-based monitoring has already helped prevent an estimated KRW 10 trillion in potential damages as of 2024.
The comprehensive measures are built around three major policy shifts:
Expanding the focus from protecting well-known fashion brands to safeguarding public health and K-brands overall;
Moving from post-incident crackdowns to AI-driven preemptive prevention;
Transitioning from government-led actions to a collaborative system involving online platforms, trademark holders, and consumers.
By 2027, the current AI monitoring system, which covers 160 brands, will be expanded to 500 brands. The enhanced system will use AI to analyze both images and text simultaneously, improving its ability to detect altered trademarks and image composites. KIPO will also work with the Korea Customs Service to intercept counterfeits identified through AI in cross-border e-commerce during customs clearance. In cooperation with the Korea Communications Commission, access to infringing websites will be blocked, and overseas-hosted infringing posts will be removed. Industry collaboration will be strengthened to implement advanced anti-counterfeit technologies in high-risk sectors like cosmetics.
For covert distribution channels such as social media and live commerce, evidence collection techniques will be enhanced and linked with planned investigations. Accounts of habitual infringers will be suspended, and information on counterfeit sellers will be shared among authorities. Punitive damages for trademark infringement will be increased up to five times, effective July 22, 2025. Large-scale counterfeit sales venues, including unauthorized street stalls in areas like Dongdaemun, will face strengthened penalties, dedicated investigation teams, and the potential revocation of permits by local governments.
Additionally, amendments to the Trademark Act will be pursued to eliminate counterfeit sales on online platforms. Platforms will be required to block reported counterfeit items, and foreign platforms must comply through a mandatory domestic representative system. Non-compliant platforms may face fines and public disclosure. KIPO will conduct on-site surveys to systematically monitor platform responses and make the findings public.
The initiative also includes plans to establish a K-Brand Protection Governance System, involving multiple ministries such as the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and Fisheries, and the Ministry of Foreign Affairs. KIPO will provide resources including lists of frequently counterfeited brands, case studies, and country-specific response manuals, while related ministries will support export promotion, intellectual property acquisition, and cooperation with overseas diplomatic missions.
Source: KIPO website
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