ED Crackdown on fake phones

The government has launched investigations into “counterfeit smartphones” that use forged parts and components. Taking part in the joint inspection are five related agencies ― the Korea Communications Commission, the Ministry of Science and ICT, the Ministry of Trade, Industry and Energy, the Korea Customs Service and the Korea Intellectual Property Office.

Officials have concluded the manufacture and distribution of bogus phones are indisputable violations of the law, vowing a massive crackdown and harsh punishment.

The counterfeit phones have long been an open secret on the market. Vendors used to bring in cheap parts and components from China and make phones without permission or smuggle and sell Chinese phones made of parts with unknown origins.

Some distributors have known these were counterfeit goods and deceived consumers touting low prices. The precise size of the bogus goods market has yet to be known, but considerable shares of secondhand phones are reportedly imitations. Some say the transactions of fake goods may even be easier in Korea than in Huaqiangbei Electronics Market in Shenzhen, China, often dubbed the “paradise of phony phones.”

The biggest damage of bogus phones is the disruption to the industry. It's a typical case of bad money driving out good money as authentic goods losing their footing to unauthentic ones. They deal critical blows to all honest players ― manufacturers, parts suppliers and distributors. Consumers cannot avoid suffering enormous damages, either.

These fake phones may show a close performance to genuine products for the time being as they use similar parts. However, customers cannot get after-sales service at formal service centers because of the forged parts and components.

Bogus phones are illegal. Their distribution is fraud that cheats consumers, and harms the industry. Now that the government has rolled up its sleeves, it should root out the evil practice. Half-baked steps could end up enhancing violators' resistance. Officials may have to put a priority on finding precise facts first, but punish any violators severely as a warning to others.

Already, the domestic smartphone market has entered into a stagnant phase. If the distribution market also collapses, the smartphone's entire ecosystem is sure to fall.