As the volume of direct overseas purchases by Korean consumers surged in recent years, the influx of counterfeit goods into the Korean market has also risen significantly. This growing trend has positioned direct overseas purchases as a new avenue for the trafficking of counterfeit products. In response, government authorities have intensified their collaborative efforts to combat counterfeit activities, while exploring ways to establish a systemic framework for a sustainable and effective countermeasure.
▶ KIPO and KCS Collaborate to Launch Counterfeit Monitoring System for Overseas Purchases
The Korean Intellectual Property Office (KIPO) and the Korean Customs Service (KCS) have introduced the Monitoring System of Counterfeit Goods in Direct Overseas Purchases, operational since April 2024. Under this system, KIPO investigates online platforms specializing in direct overseas purchases to identify potential counterfeit sales. Upon detection, KIPO shares the data with KCS, which then suspends the customs clearance of the reported counterfeit goods.
In its pilot trial conducted, from April to September 2024, the system proved to be effective, resulting in the suspension of customs clearance of 5,116 counterfeit goods. The monitoring system will be reinforced and expanded with the integration of artificial intelligence (AI) capabilities starting next year.
▶ KIPO Proposes Amendment to Expand Definition of ‘Use of a Trademark’
The KIPO has announced a proposed amendment to the Korean Trademark Act (KTA), aimed at broadening the definition of ‘use of a trademark.’ Under the proposed change, the definition in Article 2(1)11 of the KTA would explicitly include the act of ‘providing goods or packaging bearing a trademark in a foreign country for entry into Korea via third parties, such as shipping service providers.’ If the proposed amendment to the KTA is implemented, the provision could serve as a legal basis for enforcing anti-counterfeit activities associated with direct overseas purchases.
The bill has been reviewed and approved by the Council of Ministers and is expected to be submitted to the National Assembly for legislation.
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