"Companies and Government as One" Boosting Defense Against Overseas Distribution of Counterfeit K-Brand Products

The government will take direct action to eliminate the overseas distribution of counterfeit K-Brand products. The key point is that the government will not limit itself to its traditional role of providing support from behind the scenes, but will instead work alongside companies at the forefront, jointly responding to block the overseas distribution of K-Brand counterfeit goods (so-called knock-offs).

Kim Yongseon, Director of the Intellectual Property Office, is introducing the background and direction of the K-Brand Government Certification System at the Government Seoul Building on the 31st. Intellectual Property Office

The Intellectual Property Office officially announced at a Cabinet meeting on the 31st the introduction of the "K-Brand Government Certification System" with this objective.

Under the government certification system, the government will become the official rights holder of K-Brand certification trademarks overseas and will directly respond to the production and distribution of counterfeit products. The Intellectual Property Office plans to implement this system in the second half of this year.

With the government acting as the rights holder for certification trademarks, companies will no longer have to respond to counterfeits individually. The government will also be able to directly urge local authorities to protect K-Brand as a trademark owner.

For example, cosmetics exporter Company A discovered counterfeit versions of its products being distributed in the market of Country B and requested an investigation and crackdown by local authorities. However, due to a lack of cooperation from the local authorities, no action was taken, and even the investigation saw no progress for two years.

Previously, even in such situations, it was difficult for the government to proactively protect companies and K-Brand at the forefront. However, according to the Intellectual Property Office, once the government certification system is introduced, an active defense strategy by the government will become possible.

Intellectual Property Office

The reality of K-Brand counterfeit goods being distributed overseas is already at a serious level. According to the Organisation for Economic Co-operation and Development (OECD), the value of K-Brand counterfeits distributed worldwide amounts to 11 trillion won. The estimated damages from the distribution of counterfeit goods include a 7 trillion won decrease in corporate sales, a loss of 14,000 jobs, and a loss of 1.8 trillion won in government tax revenue.

However, there have been clear limitations for affected companies in responding individually. It is not only difficult to identify the production and distribution channels of counterfeits, but also the lack of proactive investigations and enforcement by local authorities, as well as low compensation for damages, have been formidable obstacles.

The government certification system is being introduced to address these on-the-ground challenges. First, the government will select 70 key export countries where the risk of counterfeit distribution is high and will directly register the K-Brand certification trademark in those countries.

Additionally, companies will be guided to voluntarily attach the certification trademark to their products, enabling the government to mobilize inter-ministerial response measures—such as diplomatic and trade actions—against local authorities in the event of K-Brand infringement.

Intellectual Property Office

Certified K-Brand products will feature the latest authentication technology to enhance effectiveness. This technology allows overseas consumers to instantly verify authenticity by scanning the product with their smartphone camera.

In particular, the government will operate a monitoring system linked to scan data to identify counterfeits in real time. If the distribution of counterfeit goods is detected, relevant ministries including the Ministry of Foreign Affairs, Ministry of Justice, Ministry of Trade, Industry and Energy, Ministry of SMEs and Startups, Ministry of Agriculture, Food and Rural Affairs, Ministry of Food and Drug Safety, and Korea Customs Service will immediately request investigations, crackdowns, or export suspensions from local authorities.

The Intellectual Property Office expects that the government certification system will reduce time and cost burdens for domestic exporters, thereby strengthening export competitiveness, while providing overseas consumers with a trustworthy environment to purchase genuine K-Brand products.

Kim Yongseon, Director of the Intellectual Property Office, stated, "The introduction of the government certification system means a shift from companies having to face the overseas distribution of counterfeit goods alone, to a structure where the government and companies respond together as one. The Intellectual Property Office is committed to the belief that protecting the value of K-Brand is equivalent to protecting the competitiveness of the Republic of Korea, and will relentlessly pursue and block counterfeit K-Brand products."

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