The scale of counterfeit products distributed by Korean companies worldwide is approximately $10 billion.
The scale of counterfeit products infringing intellectual property rights of Korean companies distributed around the world reached $9.7 billion (KRW 11.1 trillion) in 2021 alone.
According to the Korean Intellectual Property Office today (July 4), the Organization for Economic Co-operation and Development (OECD) announced the results of an analysis of the economic losses of Korean companies due to the distribution of counterfeit products, according to the ‘Illegal Trade and Korean Economy’ report published the previous day. This study was commissioned by the Intellectual Property Office of the OECD. The $9.7 billion worth of counterfeit goods was equivalent to 1.5% of Korea’s total exports that year, the report said.
Among the counterfeit products made by Korean companies distributed globally, electronic products accounted for the most at 51%, followed by textiles and clothing at 20%, cosmetics at 15%, miscellaneous goods at 6%, and toys and games at 5%. The main origins of these counterfeit products were Hong Kong and China, accounting for 69% and 17%, respectively.
Meanwhile, the report pointed out that although Korea is one of the world’s most innovative countries, it is vulnerable to counterfeit products in many ways due to its inability to integrate into the global value chain. The OECD analyzed that as counterfeit products from Korean companies are distributed, the likelihood that consumers will prefer counterfeit products over genuine products increases, which will ultimately have a negative impact on Korean companies’ exports, domestic and overseas sales, manufacturing jobs, and government tax revenues.
Kim Wan-ki, Commissioner of the Korean Intellectual Property Office, emphasized that “distribution of counterfeit products by Korean companies not only has an impact on damaging the brand image of individual companies, but can also damage the national economy, including corporate sales, jobs, and tax revenues.” He said, “Based on the results of this OECD survey, we will strengthen measures to minimize damage to overseas intellectual property rights of our companies.”
Editor. Seyeong Hong
