Illicit Trade and the Korean Economy

The Korean economy is known for its innovation and wealth of intellectual property (IP) having one of the highest patent applications in the world. Its IP-intensive industries are deeply integrated in the global economy through their active participation in global value chains. Such integration however exposes Korean IP-intensive products to high counterfeiting and piracy risks. This report examines the global trade in counterfeit products that infringe on Korean intellectual property rights (IPR) and its impact on the Korean economy. Specifically it estimates the effects in terms of sales and job losses in the Korean manufacturing sector as well as the impact on government revenues. The report concludes that the infringement of Korean IPR poses a significant threat to the Korean economy. The magnitude and widespread impact of this issue call for the implementation of comprehensive and coordinated solutions.