Man referred to prosecution for selling 18 million won in Chinese cosmetics as U.S. products

A Korean man in his 50s was referred to prosecutors for allegedly selling counterfeit Chinese cosmetics worth over 18 billion won ($12.8 million) as genuine U.S. products.

Counterfeit Chinese cosmetics disguised as U.S.-made Kiehl’s products [KOREA CUSTOMS SERVICE]

A Korean man in his 50s was referred to prosecutors for allegedly selling counterfeit Chinese cosmetics worth over 18 billion won ($12.8 million) as genuine U.S. products.

The Korea Customs Service (KCS) at Incheon International Airport referred the case to the Incheon District Prosecutors’ Office, citing a violation of the Customs Act, Trademark Act and Cosmetics Act, it said Monday.

The suspect imported around 130,000 counterfeit cosmetics from China over a period of seven years starting in 2017, according to the KCS. He allegedly resold the products domestically through open markets after forging them to look like genuine items from U.S. brands such as Estee Lauder and Kiehl’s.

The suspect is believed to have shipped the products to a shell company he set up in the United States. He then repackaged them to look like they were purchased from authorized retailers.

Investigators said he affixed fake logos identical to those used by major brands and precisely replicated not only product manuals but also serial numbers unique to legitimate items. He even included links to websites that allowed customers to check the manufacturing and expiration dates using the counterfeit serial numbers.

When major online marketplaces requested documents verifying the authenticity of his goods, he submitted forged credit card receipts and fake packing lists, claiming the items had been purchased in the United States.

After being banned from selling on certain platforms for peddling counterfeits, he continued his operations by registering new business numbers and listing the products under different accounts.

Authorities launched an investigation after noticing the prices of some branded cosmetics sold online were suspiciously low — such as a product with a retail price of 330,000 won being sold for around 150,000 won. Customer reviews also mentioned adverse skin reactions and suspicions of counterfeiting.

“Despite incurring shipping costs, he disguised the origin of the goods to avoid suspicion,” said Kim Jong-ho, head of the KCS at Incheon Airport. “Consumers should exercise extra caution when purchasing products that are significantly cheaper than market prices or that lack clear import documentation.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM CHANG-YONG [kim.minyoung5@joongang.co.kr]