Customs officials examine fake luxury bags, such as Hermes and Goyard, that have been confiscated over the years.
Customs officials examine fake luxury bags, such as Hermes and Goyard, that have been confiscated over the years.

As Chinese shopping platforms such as AliExpress, Temu, and Shein continue to expand their presence within the domestic market, it has been revealed that seized counterfeit Chinese imports amount to a staggering 1.8 trillion won over the past five years.

According to the Korea Customs Service on March 24, counterfeit imports infringing intellectual property rights detected by customs authorities over the last five years from 2019 to last year amounted to 2.09 trillion won based on market value. Among these, Chinese products accounted for 1.77 trillion won, representing 84.5 percent of the total.

By brand, Louis Vuitton topped the list with counterfeit goods worth 246.4 billion won. Rolex followed closely behind at 213.7 billion won, while Chanel also exceeded the 100 billion won mark with 113.5 billion won.

Instances of intellectual property infringement have been increasing this year. In the first two months alone, the value of detected intellectual property infringement imports stood at 65.3 billion won, marking a 39 percent increase compared to the same period last year, which was 46.9 billion won.

The problem lies in the shortage of personnel and organization to enforce these measures, particularly as the surge in overseas direct purchases from China, such as via AliExpress, exacerbates the shortage of manpower. The number of e-commerce items cleared through customs in the first two months of this year reached 25,623,000, showing a 56 percent increase compared to the same period last year, which was 16,426,000. Among these, Chinese overseas direct purchases accounted for 17,833,000, or 69.6 percent.

Meanwhile, the government is considering measures to improve the duty-free system in response to the surge in overseas direct purchases. One proposal under discussion is to reduce the duty-free limit per purchase from US$150.

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