AI Is Turning K-Beauty’s Global Success Into a Counterfeit Problem

(Photo=MotionElements)

Korean beauty brands built much of their overseas growth by using global e-commerce platforms to reach consumers without first building large retail networks abroad. That model helped K-beauty move rapidly from a niche trend into an international consumer business. It is now creating an unintended consequence. The same online marketplaces that made it easier for Korean brands to reach shoppers are also giving counterfeiters an efficient way to sell increasingly convincing copies.

The problem is becoming more relevant to American consumers as Korean skincare and cosmetics spread through Amazon and other major online channels. A shopper buying a Korean moisturizer or beauty device may no longer be able to rely on obvious packaging mistakes to identify a fake. For marketplaces, retailers and investors, the issue is also becoming a cost of K-beauty’s expansion. The larger the market becomes, the more brands must spend on monitoring, product authentication and legal enforcement, while platforms face greater pressure to prove that products sold through their systems are genuine.

South Korea’s intellectual property authorities said counterfeit K-brand cosmetics detected and blocked online overseas rose from 16,774 cases in 2023 to 23,494 in 2024 and 36,116 last year. The increase reflects not only the growing international demand for Korean cosmetics but also a change in the quality of the counterfeits themselves.

Fake Korean beauty products were once easier to identify. Poor printing, unnatural Korean text and crude packaging often exposed them immediately. That distinction is disappearing. Companies are increasingly finding copies that reproduce the shape of containers, brand colors, packaging layouts and other visual details with enough accuracy that even manufacturers sometimes need to examine the physical product closely before deciding whether it is genuine.

Industry officials say generative AI is helping close that gap. Tools that can analyze images, colors and design patterns make it easier to reproduce the visual language of an existing product without manually recreating every element. Counterfeiters can therefore imitate not simply a logo or a box, but the broader design system that makes a product recognizable.

APR, a South Korean beauty company that operates the Medicube skincare and beauty-device brand, encountered that problem in Europe last month. Customs officials at Timișoara Airport in Romania seized more than 100 products suspected of copying Medicube’s PDRN Pink Collagen Capsule Cream. The suspected counterfeits reportedly reproduced the appearance and container design closely enough that consumers would have had difficulty distinguishing them from genuine products by sight.

The scale of the problem was larger in China. In early July, authorities in Guangzhou seized more than 6,000 products suspected of imitating Medicube goods during a joint enforcement operation. Products resembling those of other South Korean beauty brands with growing overseas recognition, including Skin1004, were also reportedly found.

The problem is not limited to companies large enough to maintain extensive legal and monitoring teams. Equalberry, a skincare brand operated by South Korean consumer-brand company Boosters, has also found sophisticated copies of its products on overseas marketplaces. Some counterfeit products reproduced the brand’s signature color palettes and visual design rules rather than simply copying its name or packaging.

That is an important distinction for the business behind K-beauty. Overseas expansion once meant spending more on marketing, distribution and inventory. It increasingly also means spending more to protect the brand itself. A company that becomes popular on a global marketplace may attract counterfeiters almost as quickly as it attracts new customers.

Korean beauty companies are responding by using AI against the same problem AI is helping to create. APR has worked with AI technology specialists since 2024 to track suspected counterfeits and similar products sold through domestic and overseas marketplaces. When potential violations are identified, the company collects evidence, reviews whether laws have been broken and can pursue legal action.

Boosters is also using AI-based image monitoring to watch major online marketplaces and global e-commerce platforms around the clock. The company gathers evidence when suspicious products appear and seeks to have offending listings removed.

Product authentication is becoming another layer of defense. APR uses QR codes for Medicube AGE-R beauty devices, allowing buyers to scan a label inside the package and check a product-specific authentication number. Equalberry has introduced unique QR codes across its product lineup.

Even that system is not foolproof. A QR code taken from a genuine product can be copied and attached to a counterfeit one. Some companies are therefore tracking how authentication codes are used and warning consumers when the same code is repeatedly scanned from different devices.

South Korea’s government is now trying to give brands more protection overseas. Beginning in October, the country’s intellectual property authorities plan to introduce a government-backed K-brand certification program. South Korea intends to register a government-owned certification mark in about 70 countries and regions, including Europe, China and members of the Association of Southeast Asian Nations.

If counterfeit versions of certified products are discovered, South Korean authorities could ask local governments to investigate, take enforcement action or hold suspicious shipments at customs. The system is intended to give Korean companies more leverage in markets where pursuing counterfeiters individually can be expensive and slow.

The remaining problem is that many of the brands driving K-beauty’s overseas growth are small or relatively young. Those companies may have less money and fewer employees to handle product certification, monitoring and legal action across multiple countries. Industry officials say government support will have to extend beyond issuing a certification mark if smaller brands are expected to defend themselves effectively.

K-beauty’s counterfeit problem is therefore becoming a test of whether the industry can protect the distribution model that helped create its global success. Online marketplaces allowed Korean brands to reach American and other overseas consumers faster than traditional retail expansion would have allowed. AI is now making it just as easy for counterfeiters to imitate those brands, turning product authenticity into another cost of competing in the global beauty market.

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Jin Lee

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