June 30, 2025
KIPO Cracks Down on Fake Beauty Products - Beware of Counterfeit “Water-like” Cosmetics
The Korean Intellectual Property Office (KIPO), led by Commissioner KIM Wan Ki, announced on June 19, 2025 that KIPO's Special Judicial Police on Trademarks (hereafter referred to as "Trademark Police") has recommended to the prosecution the indictment of four individuals on charges of violating the Trademark Act through the distribution of counterfeit cosmetics.
According to the Trademark Police, from April 2023 to March 2024, Mr. A and his accomplices allegedly distributed approximately 87,000 items of counterfeit cosmetics. These products mimicked famous global brands, such as SK-II, Kiehl's, and Estée Lauder, and were falsely presented as parallel imports of genuine products. The seized counterfeit goods were estimated be worth KRW 7.9 billion in equivalent genuine product value. The alleged offenders reportedly gained around KRW 2.1 billion in illegal profits from their sales.
<Counterfeit Cosmetics Supplied through Numerous Distribution Channels from Wholesalers to Home Shopping Partners>
In this situation, counterfeit cosmetics were indiscriminately sold to a wide range of vendors, including wholesalers and TV home shopping merchants. The perpetrators deceived wholesalers by passing off fake goods as authentic brand items. The counterfeit items were so meticulously crafted—with highly convincing containers, labels, and packaging—that even experienced distributors struggled to distinguish them from genuine brand products.
In March 2024, the Trademark Police were able to intervene during one attempt to export their counterfeit products overseas, seizing over 6,000 items of counterfeit cosmetics valued at KRW 560 million.
In another case, the Trademark Police detected the offenders attempting to supply counterfeit products to home shopping companies via affiliated vendors. During April and July 2024, they were able to seize around 40,000 items of counterfeit cosmetics valued at over KRW 1.4 billion that were being stored in a warehouse in Gyeonggi Province.
Further digital forensic investigations uncovered sales records showing the additional distribution of 41,000 counterfeit items valued at over KRW 5.9 billion between April 2023 and March 2024.
As a result of the investigation by the Trademark Police, it was revealed that the offenders were working in a coordinated and organized manner. Suspect A oversaw overseas procurement and import operations, while Suspect B (age 40) handled documentation, and Suspect C (43) and Suspect D (38) managed domestic distribution.
<Counterfeit Cosmetics Found to Be Fake "Water-like" with No Functional Ingredients>
Upon analysis by trademark holders and specialized testing institutions, the seized products were found not to match the genuine formulations. For example, counterfeit SK-II essence products contained no detectable amounts of niacinamide, a critical ingredient required for skin whitening effects. Imitation Estée Lauder serums were found to contain less than the labeled 50ml, falling short of acceptable tolerances. While no harmful substances were detected (as of April 2025), the cosmetics failed to meet standards for key ingredients and content volume, and therefore, did not have any of the benefits of a genuine skincare product.
* According to Korea's Ministry of Food and Drug Safety Notice No. 2020-132 (December 30, 2020), a minimum amount of niacinamide is required for whitening functionality claims.
Despite their ineffectiveness and insufficient levels of functional ingredients, these fake "water-like" cosmetics were sold at roughly one-third the price of the expensive genuine products—making them appealing to unsuspecting consumers. The Trademark Police emphasized that although the counterfeit items do not contain harmful substances, they have not been subject to any quality control during manufacturing or distribution, posing potential safety risks to consumers.
Director General SHIN Sang Kon of the Intellectual Property Protection and International Cooperation Bureau at KIPO stated, "It's difficult for ordinary consumers to differentiate between genuine and counterfeit products especially with everyday items like cosmetics. We urge consumers to exercise caution when purchasing products significantly below regular retail prices and to use official distribution channels whenever possible. KIPO will intensify crackdowns on counterfeit goods that cause significant consumer harm and threaten public health and safety."