"One Store Earns Hundreds of Thousands of Won"... Chinese Counterfeit Cosmetics Factory Uncovered

Counterfeit Lipstick Costs Less Than 1,000 Won Each
Fake Shipping Locations, Nationwide Delivery by Truck

A counterfeit cosmetics manufacturing plant that has been systematically operated in China has been uncovered, sparking controversy.

On September 7, Chinese media outlet The Beijing News reported, "Counterfeit cosmetics factories are organized beyond imagination, operating with extensive and tightly knit surveillance networks."

AI generated image.

All 6 Types of Cosmetics Sold Online Found to Be Counterfeit

Recently, an increasing number of consumers have reported skin troubles after using cosmetics purchased online, raising suspicions about the distribution of counterfeit products. The news outlet stated, "After directly purchasing and comparing six types of cosmetics with authentic products, it was found that all items bought online turned out to be counterfeits."

According to The Beijing News, investigations into several wholesalers in Shantou, Guangdong Province revealed that a "distribution platform" had developed, enabling the manufacturing, sale, and even advertisement of counterfeit cosmetics without any real-name verification. One seller said, "It only costs 3 to 5 yuan (approximately 600 to 1,000 won) to make a counterfeit lipstick. It's a structure where one store can earn hundreds of thousands of yuan."

Even Attempted Settlement Offers Over the Phone

Screenshot of the Medicube official website.

The news outlet added that after visiting the factory, the reporters received a call from a number with caller ID blocked, during which someone attempted to offer a settlement, saying, "Do not report to the police. Meet the factory owner to discuss the terms."

These counterfeit cosmetics factories were found to be hidden in isolated residential areas, where multiple trucks were used early in the morning to transport goods. Finished products were regularly loaded onto delivery trucks for nationwide distribution, while the actual shipping locations were concealed to avoid tracking. In particular, every stage—from transporting raw materials and production to parcel delivery and online sales—was broken down into specialized tasks. This strict division of labor meant that even when one or two workshops were exposed, the overall distribution network remained unharmed.

Meanwhile, according to recently released data from the Korean Intellectual Property Office, the number of K-brand counterfeit cosmetics blocked by overseas online platforms rose from 16,774 in 2023 to 23,494 in 2024, and to 36,116 last year—an increase of 53.7% compared to the previous year.

The Korea Customs Service also detected 117,005 cases of counterfeit K-brand items at the customs clearance stage last year. Among these, cosmetics accounted for 41,903 cases, making up the largest share at 35.9% of the total. Chinese products comprised 97.7% based on the country of origin. The detected cases included counterfeit versions of well-known domestic brands such as Sulwhasoo and Joseon Beauty.

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