Counterfeit luxury goods hidden in walls... Secret store operated for 6 years uncovered

An owner who operated a secret store disguised as a wall in the Myeongdong area and sold so-called 'counterfeits' has been booked. Mr. A, who ran this business, changed locations and sold counterfeits for six years, undergoing investigations five times, but did not stop the illegal activities because the profits exceeded the fines.

According to the city on the 20th, the Seoul Metropolitan Government's Civil Affairs Judicial Police Bureau criminally booked two suspects who sold counterfeit goods to foreigners in the Myeongdong area and seized a total of 1,200 counterfeit items.

Scene of counterfeit goods being seized. Provided by Seoul City

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The total seized items are estimated to be worth 3.82 billion KRW at retail price. By item, there were 125 counterfeit watches with fake trademarks, 461 wallets, 434 bags, 47 earrings, 31 clothing items, 49 hats and mufflers, and 53 pairs of shoes.

Mr. A, the owner of this business, appointed another suspect, Mr. B, as a 'front man' to avoid criminal punishment and sold counterfeit goods for over six years by changing locations around Myeongdong. They were investigated five times for trademark law violations, but since the sales profits far exceeded the fines, they continued the crimes. The confirmed sales amount from this investigation is approximately 250 million KRW over one year, with a net profit of about 150 million KRW. However, the total fines Mr. A paid over six years amounted to only 12 million KRW.

Because of this, Mr. A's criminal methods evolved further. In a secret store of about 30 pyeong (approximately 99 square meters) connected by stairs disguised as a wall, counterfeit products such as luxury watches worth several hundred million KRW, bags, wallets, and shoes were displayed and sold as if in a shopping center. Only genuine products were displayed in the storefront, and only foreigners who came after seeing advertisements on social media platforms like Instagram were guided to the large secret store, thus evading law enforcement crackdowns.

Distributing, selling, or storing counterfeit goods is punishable under Article 230 of the Trademark Act by imprisonment of up to seven years or a fine of up to 100 million KRW.

Last year, the Civil Affairs Bureau criminally booked 125 people for trademark law violations and seized about 16,000 counterfeit items estimated at 21.5 billion KRW in retail value. The Seoul Metropolitan Government plans to continue thoroughly tracking and confiscating criminal proceeds obtained not only from simple possession or storage but also from the sale of counterfeit goods. If someone contributes to public interest by reporting or providing decisive evidence of criminal acts, a reward of up to 200 million KRW will be given according to Seoul city ordinances. Choi Won-seok, head of the Seoul Civil Affairs Judicial Police Bureau, said, "Recently, the sale of counterfeit goods targeting foreign tourists in major Seoul tourist spots such as Myeongdong and Dongdaemun has been increasing. Since this is a serious problem that disrupts market order and damages the nation's dignity, we will conduct strict investigations."

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