In July 2025, Chinese authorities conducted a raid on a large warehouse in Guangdong Province, revealing an extensive counterfeit operation for popular K-beauty products. The operation, identified by the company Trust Data, was notable for its organizational structure and mass production capabilities instead of a small-scale setup, supplying counterfeits to overseas markets. Over 310,000 counterfeit cosmetics were seized, valued at over 15 billion won, marking this raid as one of the largest crackdowns on counterfeit factories in China to date.

Trust Data, led by CEO Lim Dong-sook, specializes in protecting corporate brands and intellectual property through measures such as blocking online counterfeits using AI technology and facilitating legal actions against counterfeit production facilities in China. The number of brands utilizing Trust Data's services has steadily increased, with a reported annual growth rate of 50%. Lim emphasizes that the scale of counterfeit operations has been concerning, but what's more alarming is the evolving tactics used by counterfeiters, particularly the rise of 'impersonating' counterfeit products.

Lim recounts a specific case from August of last year, where a counterfeit brand falsely claimed to be the Vietnamese branch of a legitimate Korean health supplement company. This shift in methods highlights the growing sophistication of counterfeiters, who now not only replicate products but also engage in deceptive marketing practices that mislead consumers. Such developments in the counterfeiting landscape necessitate continued vigilance from both authorities and brands to safeguard their integrity in an increasingly competitive market.