[Exclusive] 'Jjaktung Heaven' Instagram... Number 1 with 50,000 Counterfeit Sales

[Asia Economy Reporter Buaeri Boo] #Office worker Kim Bora (36) recently made up her mind to purchase a luxury Yves Saint Laurent bag through Instagram, only to experience an embarrassing situation. The luxury bag Kim bought turned out to be a convincing 'fake.' Kim said, "The photos posted on Instagram looked exactly like the genuine product," adding, "Later, I noticed the post had the hashtag #Replica (meaning counterfeit product)."

On the 13th, it was revealed that the scale of counterfeit goods sold on online platforms has reached the trillion-won level. Analyzing data obtained from the Korean Intellectual Property Office by Go Min-jung, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee from the Democratic Party, it was found that a total of 210,865 counterfeit products were distributed through Instagram, Naver, Kakao, and others from last year until September this year. According to Go's office, the estimated total value of counterfeit goods sold on online platforms reached approximately 1.5731 trillion won. This compares to 938.2 billion won in 2019 and 634.9 billion won in 2020 (as of September).

Counterfeit bag posted on Instagram. Photo by Go Min-jung's office

By platform, Instagram accounted for an overwhelming 56,756 cases of counterfeit product detections. The reason Instagram has become a 'fake goods paradise' lies in the platform's unique characteristics. Instagram is centered around photo posts with hashtags and short texts, making it easier to upload product sales photos compared to other services. In fact, many show-offs who flaunt luxury goods or travel destinations are active on Instagram. Numerous Instagram users who admire them become potential customers for counterfeit sellers. It is also easy to hide sales evidence. Most counterfeit sellers conduct secret transactions through 'Direct Messages (DM),' which are difficult to monitor.

Following Instagram, the number of counterfeit product detections was highest on Bungaejangter (36,411 cases), KakaoStory (34,492 cases), and Naver Blog (27,898 cases). Other platforms included Hello Market (24,051 cases) and Coupang (7,568 cases). On Naver, counterfeit distribution was also detected in Naver Cafe (22,312 cases) and Smart Store (1,377 cases). Regarding the types of counterfeit products distributed, bags topped the list with 66,171 cases, followed by clothing with 52,720 cases, and shoes with 37,438 cases.

Gominjeong, Member of the Democratic Party of Korea

As counterfeit sales run rampant, there are calls to strengthen protective measures for online platform shopping. Representative Go stated, "With the activation of non-face-to-face transactions, the boundary between general online platforms and specialized open market platforms is becoming blurred," adding, "We will consider revising the Electronic Commerce Act, which does not reflect the times, to establish protective measures for transactions occurring on online platforms."

In this regard, Instagram explained, "We take actions such as deleting posts when IP (intellectual property) companies raise complaints." Naver is strengthening systems to prevent counterfeit sales through 24-hour monitoring and reporting systems. Kakao takes disciplinary actions against sales channels when complaints are filed.

This content was produced with the assistance of AI translation services.