Special crackdown on 'label switching' that damages K-fashion trust... rewards up to 200 million won
The South Korean government has launched a special crackdown on 'label switching' to prevent foreign-made clothing from having their origin labels replaced with Korean ones.
The South Korean government has initiated a concentrated effort to combat the illegal practice of 'label switching', where foreign clothing labels are fraudulently replaced with domestic labels. This crackdown, resulting from a collaborative effort involving the Korea Customs Service, the Fair Trade Commission, and other governmental bodies, is set to run for 100 days from May 19. The Customs Service reported a notable increase in label switching cases, pointing to a growing problem within the industry that has significant implications for the reputation of K-fashion.
Historically, the number of label switching incidents escalated from 893 cases valued at 4.8 billion won in the previous year to 670 cases valued at 2.7 billion won reported in 2023. This trend poses serious risks to both consumer trust and the integrity of domestic producers. The government's response involves not only enforcement measures but also an invitation for public reporting during a focused three-week period leading up to the main crackdown, aimed at sourcing information on potential violations.
Through this initiative, the government hopes to bolster the brand value and trustworthiness of the K-fashion industry, which has been heavily affected by fraudulent practices. Violations can result in severe penalties, including imprisonment and hefty fines, while whistleblowers may receive rewards up to 20 million won for reporting cases of label switching. This strategy illustrates the government's commitment to maintaining fair market practices and protecting domestic production against such illegal activities, thereby reinforcing consumer confidence in K-fashion products.