In order to eradicate the flood of counterfeit goods from overseas, it is important not only for private companies to make their own efforts, but the government to provide institutional support as well, according to Kim Wan-ki, commissioner of South Korea’s Korean Intellectual Property Office (KIPO).

“KIPO is taking the initiative to eradicate counterfeit goods by strengthening artificial intelligence (AI) monitoring on online platforms, particularly on Chinese platforms, and requesting the removal of counterfeit products even before the affected companies lodge a complaint,” Kim said during a recent interview with Maeil Business Newspaper.

KIPO identified 200,000 counterfeit goods in 2023 alone. Kim, who took office in June 2024 and will soon celebrate his 100th day in office, passed the national civil service exam in 1996 and spent over 30 years in the Ministry of Trade, Industry and Energy, holding key positions such as head of industrial policy, director of trade policy, and head of trade and investment.

A recognized industry expert and hands-on leader, he has been meeting with representatives of small and medium-sized enterprises (SMEs) and startups since his appointment to implement patent policies that meet their needs.

One of his key focus areas is eliminating counterfeits of Korean brands that are sold on Chinese e-commerce platforms such as AliExpress, Temu, and SHEIN.

KIPO has been piloting an AI-powered counterfeit monitoring project in partnership with private AI startup FAiKERZ Inc. since he took office in June 2024.

“We are monitoring counterfeit goods for 11 Korean brands, supported by government funding, and plan to expand the number of monitored brands to 130 in 2025 while building a comprehensive monitoring system in collaboration with the AI startup,” Kim said.

He also noted that his agency is in talks with foreign platforms to ensure that counterfeit product pages can be immediately removed upon request, even without a request from affected companies. KIPO has already signed a Memorandum of Understanding (MOU) with AliExpress and is in talks with other platforms like Temu.

KIPO is also considering introducing a mandatory domestic agent designation system for overseas operators.

“Foreign platforms are currently not directly responsible for distributing counterfeit goods, but we can impose fines if they designate a Korean agent,” Kim said, explaining that the idea is to make overseas e-commerce platforms more responsible.

KIPO has also acted on technology theft by large companies. The agency played a key role in the recent amendment to the Unfair Competition Prevention Act, which increased the punitive damages amount for technology theft from three to five times, a level of punishment that is matched only by China.

Kim also highlighted the need for an enhanced intellectual property (IP) valuation system and advanced IP finance to help startups overcome the so-called “death valley,” or the critical 3 to 7-year period after initial funding is depleted and before generating profits.

He cited GF Fermentech Inc., a Korean biotech startup he visited after taking office, as a success story.

“The company was on the brink of collapse due to financial pressure, but it managed to secure a 1 billion won ($763,189) loan based on an IP valuation of its microbial fermentation process patent, which allowed it to make a comeback,” Kim said.

The company saw a nearly 50 percent increase in sales and turned a profit compared to the same period in 2023, he noted.

“To strengthen new growth sectors, we are hiring retirees from advanced industries as patent examiners and plan to add 60 more specialized examiners in January 2025,” Kim said, stressing that “KIPO is transforming from an agency that simply examines patents into one that plays an active role in revitalizing the intellectual property ecosystem and driving a dynamic Korean economy.”

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