South Korea Launches "K-Brand" Government Seal to Combat Counterfeits

South Korea shields the global pull of its brands. President Lee Jae Myung announced this Wednesday, October 7, the "K-Brand Government Certification System," as reported by Premium Beauty News. With this system, consumers will be able to check if a product is authentic by scanning a QR code on the item's packaging with their mobile phone."K-brands are growing in popularity, but Korean companies are also suffering increasing damage from counterfeits," explained Lee, the President of South Korea, on the social network X. He added that the Government will respond quickly and will no longer leave companies to fight alone.A market that moves record figuresThe context is one of a cultural wave, the Hallyu, which continues to grow. As we already reported in an article in Next in Beauty, content exports reached a record of 14.9 billion dollars last year, surpassing overseas sales of computers and home appliances. Exports of agri-food products and cosmetics reached highs of 12.4 billion and 11.4 billion dollars, respectively. The country also ranks among the preferred tourist destinations and received a record 18.94 million foreign tourists.How the program worksThe system was not born this week, and they have explained that they have been working on it for some time. The Korean Intellectual Property Office (KIPO) opened the first call for companies in August, until September 11, and the Government will register the national certification mark in 73 countries. Selected companies will be able to use the seal and will receive aid of up to 200 million won to implement the authentic product certification technology. The change in approach is the real headline. KIPO Commissioner, Kim Yong-seon, described it as moving from a model where each company fought counterfeits alone to one where the Government and companies act "as a single team." As the State is the owner of the certification mark, it can act directly against the manufacture and distribution of fakes abroad. More than thirty companies have already joined, including Amorepacific, the country's largest cosmetic group.The dimension of the problemThe volume of counterfeit K-brand products circulating abroad is estimated at around 11 trillion won (8.13 billion dollars), with annual losses of 7 trillion won in sales and some 14,000 industrial jobs. In cosmetics, the trend is clear. According to KIPO, counterfeit K-brand cosmetics detected and blocked online abroad increased from 16,774 cases in 2023 to 23,494 in 2024 and 36,116 last year. Counterfeiters are now resorting to the use of artificial intelligence to replicate packaging, color palettes, formulas, and even shapes, with "exact copies" difficult to distinguish with the naked eye.But it's not just the economic impact: there is also a health risk. An analysis by the Korean Consumer Agency of 34 counterfeit cosmetics from foreign brands sold in the domestic market found that one in three (32.4%) contained dangerous substances such as methanol and lead above safety limits.A measure that raises doubtsThe industry views the seal favorably, but with nuances. Experts warn that QR codes can also be copied, and the industry is asking for economic and legal support so that small brands can benefit from the program. Korean media precisely point to support for medium and small brands as the great challenge.

South Korea Launches "K-Brand" Government Seal to Combat Counterfeits

President Lee Jae Myung presents a QR code authentication system for Korean products. Amorepacific is one of the 31 companies that have already joined