Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Musinsa enforces zero-tolerance policy on fake labels
A scene from Musinsa's global campaign / Courtesy of Musinsa
By Lee Gyu-lee
Shopping platform launches probe into fraudulent relabeling by partner brands
Fashion platform operator Musinsa is doubling down on its crackdown on fake labels and misleading product claims, warning of zero tolerance and permanent bans for any partner brands found violating the rules.
Fraudulent relabeling, a scheme where low-cost goods are relabeled and sold as higher-quality or original designs at a higher cost, has been a chronic issue in the fashion industry, as most distributors have the tendency to downplay the problem.
However, Musinsa is moving in the opposite direction, announcing it will “respond more decisively” on the issue on its official blog last week.
The company recently launched an investigation after customer inquiries raised suspicions that certain partner brands had been selling relabeled low-cost products despite previously claiming to produce items in-house.
The shopping platforms, including major players like W Concept, Ably and 29CM, have long struggled to inspect products before sale, citing the logistical difficulty of vetting every product from third-party sellers.
However, a more serious concern lies in how platforms respond once misconduct is uncovered, as many distributors still opt to quietly delist offending products rather than publicly disclose violations or compensate customers.
“From a platform’s perspective, there is always the temptation to overlook such issues due to concerns over losing transaction volume and partner brands, but Musinsa appears willing to accept short-term revenue losses to restore customer trust,” an industry insider said.
The logo of Musinsa / Courtesy of Musinsa
To strengthen oversight, Musinsa plans to deploy an artificial intelligence-based online inspection system to analyze similarities across more than 1.2 million listed products. The system will not only monitor products on its own platforms, Musinsa and 29CM, but also compare listings across local and global e-commerce platforms to improve accuracy in detection.
The company said it will enforce a one-strike-out policy by removing all products from a brand found of committing a violation. It will also consider taking legal action, including damage claims, for reputational harm to the platform and its broader partner ecosystem.
This is not the first time Musinsa has taken such measures. In 2024 and 2025, the platform conducted its own investigations into its partner brands for misleading claims about product composition, such as incorrect fill information for puffers. It publicly disclosed the affected products and brands, while other e-commerce platforms deleted problematic listings after Musinsa’s disclosure.
“We will not turn a blind eye to problems out of fear of criticism and we will continue working to strengthen the fashion ecosystem and rebuild customer trust,” the company’s official said.
“We sincerely apologize to our customers and partners for the concerns caused, and we will strive to deliver a more transparent and secure shopping environment.”
Such moves come as regulatory scrutiny over platform accountability intensifies. Last month, the Korea Fair Trade Commission launched a research project to improve consumer protection frameworks for online marketplace intermediaries under the e-commerce law.
“Given the evolving role of platforms and shifting consumer expectations, there is a need to strengthen consumer-protection frameworks,” the commission said, signaling potential reforms aimed at curbing platforms’ passive approach across open marketplaces, malls and vertical platforms.