Smartphone Counterfeiters
A group of persons that produced and distributed counterfeit Samsung Electronics’ smartphones in Korea has been arrested. Until now, it was believed that the counterfeit Samsung products were manufactured and put on the market in China.
The International Crime Investigations Unit of the Busan Metropolitan Police Agency announced on March 18 that it indicted a ring of 14 people without detention on the charge of manufacturing and selling 1,200 units of fake Samsung smartphones.
The ring smuggled counterfeit smartphone parts with Samsung Electronics labels worth 288 million won (US$255,047.82) into the country from Shenzhen in China. The gang has been in operation since Sept. 2013.
Also, it smuggled the labels of the manufacturer serial numbers of Samsung smartphones, which were exported to China, into the country. Then, it pocketed 934 display screens worth 95 million won (US$84,130) after manipulating the documents with two employees from a Samsung service center to look as if customers repaired their smartphones with the display screens. The police said that this is because Samsung smartphones would not work without genuine displays.
The ring manufactured 1,200 fake Galaxy S3s and Note 2s worth 850 million won (US$752,745). The counterfeit products, which cost 150,000 won (US$133) per unit to produce, were sold at 250,000 to 300,000 won (US$221 to $266) per unit in a number of cell phone stores in Busan, the police said.
The police are also expanding their investigation after it seized documents indicating that fake smartphone parts smuggled in from China have been supplied all over the nation.
Even though smartphone screen displays are being sold at 100,000 won (US$89) per unit in Korea, they are being sold at 250,000 (US$221) in other countries. Therefore, the police believe that a number of new and recycled screen displays have been smuggled out of the country as well. The department is also hot on the trail of the display smugglers as well.