The government is set to strengthen sanctions on the distribution of counterfeit goods that pose threats to public health and safety, hinder corporate growth and innovation, and erode the global presence of K-brands in overseas markets. In particular, advanced technologies such as artificial intelligence (AI) will be actively deployed to block increasingly sophisticated and covert counterfeit distribution channels, including online platforms, social media, and live commerce broadcasts.
* KIPO estimates that AI-based monitoring helped prevent potential counterfeit damage worth approximately KRW 10 trillion (2024).

On July 30 (Wed), the Korean Intellectual Property Office (KIPO, 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.

These measures focuses on three major policy shifts:
-Expanding the scope from protecting primarily well-know fashion brands to safeguarding public health and K-brands;
-Moving from post-incident crackdowns to AI-driven preemptive prevention;
-Shifting from government-led policies to a collaborative system involving online platforms, trademark holders, and consumers.

The current AI-based monitoring and blocking system, covering 160 brands, will be expanded to 500 brands by 2027. By leveraging AI and advanced technologies to analyze images and text simultaneously, the system will be able to detect even altered trademarks and image composites. In cooperation with the Korea Customs Service, counterfeit goods detected through AI in cross-border e-commerce will be intercepted at customs clearance. In coordination with the Korea Communications Commission, access to infringing websites will be blocked and infringing posts hosted overseas will be removed. Industry collaboration will also be strengthened to apply advanced counterfeit prevention technologies to high-risk sectors such as cosmetics.

Evidence collection techniques for covert distribution channels ― such as social media and live commerce broadcasts ― will be enhanced and linked to planned investigations. Accounts of habitual infringers will be suspended, and information on counterfeit sellers will be shared among authorities. Furthermore, punitive damages for trademark infringement will be increased up to five times (effective July 22, 2025). For large-scale counterfeit sales venues ― such as unauthorized street stalls in Dongdaemun ― penalties will be strengthened, including the deployment of dedicated investigation teams and the authority for local governments to revoke stall permits.

Amendments of the Trademark Act will be pursued to eliminate the distribution of counterfeits on online platforms. Once trademark holders report counterfeit items, platforms will be required to block their sale. Foreign platforms will be subject to the same obligations through a mandatory domestic representative designation system. Platforms that fail to comply with takedown requests will be subject to fines and public disclosure. KIPO will also implement an on-site survey, with the findings made available to the public, to monitor platform responses systematically.

This initiative also includes the establishment plan of a K-Brand Protection Governance System involving KIPO, 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 a list of frequently counterfeited brands, case studies, and country-specific response manuals, while related ministries will support export promotion, intellectual property obtention, and cooperation with overseas diplomatic missions.

KIPO Commissioner Kim Wan-ki stated, "As counterfeit production and distribution become increasingly sophisticated, our response must become more scientific and precise. KIPO will take the lead in leveraging cutting-edge technologies to combat the spread of counterfeit goods while building a responsible and participatory market ecosystem where all stakeholders actively engage in protecting brand value and consumer trust."

Source: https://www.kipo.go.kr/en/engBultnDetail.do?board_id=kiponews&cp=1&pg=1&npp=10&catmenu=ek06_01_01&seq=1802