Outwardly 'POSCO', but Actually a Low-Cost Foreign Steel Plate Distributor Exposed

A company A and its CEO Mr. B (in his 50s) were sent to the prosecution for distributing imported low-cost stainless steel plates disguised as the POSCO brand in the domestic market.

Provided by Korea Customs Service

According to the Seoul Customs Office of the Korea Customs Service on the 21st, company A is accused of violating the Foreign Trade Act and Trademark Act by importing 3,300 tons of foreign stainless steel plates without country of origin labeling (worth about 12.5 billion KRW at market price) and distributing them in the market with the POSCO trademark without the trademark owner's permission, causing consumers to mistake the products as Korean-made steel plates.

The company was found to have planned illegal activities by exploiting the fact that stainless steel plates imported from China, Indonesia, and other countries were cheaper than Korean products while handling both POSCO and foreign steel products simultaneously.

The Seoul Customs Office recognized such illegal activities of company A through intelligence and initiated an investigation. They also secured materials related to the illegal acts, such as work instructions labeled "unauthorized trademark labeling" and "removal of import labeling," which were stored at the company, revealing the facts of the charges.

POSCO, the trademark owner, stated, "We are striving to develop high-quality steel products with differentiated technology to respond to the onslaught of low-cost foreign products," and expressed concern that "illegal acts of selling counterfeit foreign steel plates under our brand not only damage the brand image but also disrupt the distribution order of the domestic steel industry."

In this regard, the Seoul Customs Office said, "We plan to strengthen crackdowns to prevent low-cost foreign products from being disguised and sold as 'K-brand' products," adding, "Considering that the steel industry is a national key industry, we will further enhance monitoring and actively respond to acts of domestic product disguise."

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