What did the court decide?

The Seoul Eastern District Court sentenced Kim, CEO of jewelry company JSTINA, to one year in prison, suspended for two years, on October 15, 2026. Four employees were each fined 8 million won. The charges include violations of the Foreign Trade Act and the Act on Support for Sales Channels.

What was the scheme?

According to prosecutors, the company imported about 120,000 wristwatches from China between 2017 and 2023 and sold them as domestic products. Prosecutors said the 'Made in China' labels were removed with acetone and the watches reassembled. Some watches were also presented to the Public Procurement Service as self-produced.

| Item | Detail | |---|---| | Watches involved | About 120,000 | | Period | 2017 to 2023 | | CEO sentence | 1 year, suspended for 2 years | | Employee fines | 8 million won each |

Why did the court reject the CEO's defense?

The CEO said he did not know about the origin violations. The court disagreed, finding from employee reports and business plans that he knew and allowed the practice for business reasons. The court also said it was not plausible that subordinates could arrange public procurement deals behind the CEO's back.

What mitigating factors did the court consider?

The court noted that the CEO had no prior criminal record and that such practices had been customary at the company before he became CEO. The employees were first offenders who admitted wrongdoing and expressed remorse.

For international fans

JSTINA is a jewelry company, and this case is about product origin fraud rather than the entertainment industry. Foreign buyers of Korean-made goods may want to check the origin labeling of products they purchase.