A recent amendment to South Korea's Trademark Act, which came into effect on May 27, 2025, clarifies the legal ambiguities that previously limited the ability of customs authorities to effectively intercept counterfeit goods supplied by overseas sellers.

This amendment comes at a crucial time as domestic consumers increasingly turn to low-cost Chinese e-commerce platforms. Customs data reveals a sharp rise in overseas direct purchases, climbing from approximately 63.5 million cases in 2020 to 96 million in 2022 and exceeding 120 million cases between January and August 2024 alone. Parallel to this trend, customs seizures of trademark-infringing goods have nearly tripled, from 28,824 cases in 2021 to 83,892 in 2023, underscoring the urgent need for stronger regulatory measures.

Under the Customs Act, customs can suspend clearance of goods suspected of being counterfeit only if those goods infringe trademark rights. To establish trademark infringement, the "use of a trademark" as defined by the Trademark Act must be proven. However, the previous law left unclear whether goods directly purchased overseas by domestic consumers for personal use qualify as "use of a trademark." This legal uncertainty created a loophole, raising questions about whether the customs clearance of such counterfeit goods has a legal basis.

The amendment directly addresses this issue by expanding the definition of "use of a trademark" to explicitly include "supplying goods or packages of goods bearing a trademark, marked abroad and brought into Korea through a third party, such as a delivery service provider." This change empowers customs to treat counterfeit goods personally imported via overseas direct purchases as trademark-infringing items and block their entry.

The updated law strengthens legal protections for trademark owners and aims to create a safer environment for consumers amid the rapid growth of cross-border e-commerce. Authorities anticipate that this change will help reduce the rising risks posed by counterfeit imports while balancing the interests of both consumers and rights holders.